Edinburgh firm John Menzies 'well placed for growth'
- 13 November 2012
- From the section Scotland business
Distribution and aviation firm John Menzies has reported it is "well placed" to achieve earnings growth for the year, as a positive start to the second half continued.
The company said its aviation division was again on track to deliver underlying growth, despite adverse foreign exchange fluctuations.
Trading in its distribution arm has been broadly in line with last year.
Menzies added that full-year results should meet its expectations.
In an interim statement, the Edinburgh-based company said ground handling volumes at Menzies Aviation were up 2.7% as underlying business continued "to perform well in a tough trading environment".
However, like-for-like cargo volumes were down by 7.3%.
Menzies said it had completed the re-structuring of its loss-making UK cargo business, having exited four facilities and concentrated its main cargo offering on London Heathrow.
The company now has just one loss-making cargo operation, in Chicago.
Trading at Menzies Distribution has been "broadly in line with last year", with newspaper sales ahead of expectations following a number of cover price increases and new business gains from News International and DC Thomson.
In August Menzies announced it had won a renewed contract to distribute The Sun, The Times and Sunday Times in a deal worth £158m per year.
In its interim statement, Menzies said declines in magazine sales were "within the range of expectations expected although weekly titles are proving particularly challenging".