John Menzies CEO leaves in restructuring

London: John Menzies PLC is reorganising its management structure to give operational independence to its news distribution and aviation divisions, resulting in the immediate departure of CEO Patrick Macdonald, it said today.
The businesses had contrasting fortunes last year, Menzies said, with substantial growth in aviation more than offset by tough market conditions in distribution. Whereas underlying operating profits in aviation were up 25 pct to 16.6 mln stg, the news and magazine distribution business suffered a 23 pct fall to 23.7 mln stg causing a 3 pct drop in FY pretax profits to 355.6 mln stg.
Operational control will be devolved to the two divisions, and head office functions, such as corporate governance, will come under the remit of finance director Paul Dollman, the company said.
It has secured two 10-year joint venture contracts for cargo handling at the new Hyderabad and Bangalore airports, which are scheduled to commence operations in 2008. 'India is a significant market for us,' Dollman said.
20/03/07 AFX/Forbes, NY

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Categories: Airports Mar 2007, Cargo Mar 2007, Foreign Mar 2007