John Menzies FY result to be in line with expectations, to close cargo handling at Chicago O'Hare

UK's John Menzies stated (03-Jan-2013) following its interim management statement released on 13-Nov-2012, the Group has continued to make positive progress and the board anticipates the full year result to be in line with its expectations. The company also said Menzies Aviation has decided to close its cargo handling operations at Chicago O'Hare International Airport, "having exhausted all alternative options over the last two years". This will result in an exceptional charge of GBP7 million in 2012 but will improve EBIT in 2013 by around GBP1.4 million. Following the series of restructuring actions across both divisions, the full year exceptional charge will be in the region of GBP18 million. The enhancements to underlying earnings from these actions are included within the board's expectations and leave the Group in a stronger position with a more stable platform for growth. Net debt at the year end is expected to be below GBP100 million. The Group interest charge will increase by approximately GBP2.5 million in 2013, purely as a result of the change to the accounting treatment of IAS19. [more - original PR]