Published January 03, 2013
Airport services provider and newspaper distributor John Menzies Plc said it would close its loss-making cargo handling operations at the Chicago airport at a cost of 7 million pounds ($11.29 million).
The company also said it expects total restructuring costs to be about 18 million pounds for 2012.
Menzies said in November last year that it restructured its struggling UK cargo business by exiting operations at Glasgow, Birmingham, East Midlands and Manchester airports, allowing it to focus on a single facility at London's Heathrow.
Newspaper and magazine distribution in UK generates 70 percent of the company's revenue. But the aviation services division, which operates at about 130 airports in 29 countries, brings in about 64 percent of its adjusted operating profit.
The company, which began as a bookshop in 1833, said full-year results would be in line with its expectations.
Menzies also said Paul Dollman, finance director for 10 years, would retire from the board.
The Edinburgh-based company's shares, which have risen about 20 percent in the last one year, were up slightly at 634.5 pence at 3:50 a.m. ET on the London Stock Exchange.
(Reporting By Shilpa Hinduja in Bangalore; Editing by Joyjeet Das)