Aviation firm John Menzies shuts US operation

John Menzies has already restructured its operations in Britain

Scottish company John Menzies is shutting its loss-making cargo business at Chicago Airport in the US, at a cost of £7m.

The move by the aviation services company came under a restructuring plan which has already seen changes to its UK operations.

The Edinburgh firm is best known as a newspaper distributor.

But the aviation services business generates around two thirds of its profits.

Overall financial results are expected to be in line with expectations.

Menzies Aviation said its Chicago Airport operation would close after having exhausted all alternative options over the last two years.

This will result in an exceptional charge of £7m in 2012, but will improve earnings before interest and tax in 2013 by about £1.4m.

Menzies previously restructured its struggling UK cargo business by getting out of operations at Glasgow, Birmingham, East Midlands and Manchester airports, to focus on a single facility at London's Heathrow.

The aviation services division operates at about 130 airports in 29 countries.

Meanwhile, Menzies said finance director Paul Dollman, who has held the post for 10 years, would retire from the board.