FRITZ REPORTS DROP IN EARNINGS DUE TO SYSTEMS COSTS

   Fritz Cos. reported a net income of $13.5 million for its fiscal year
ending on May 31, compared to $18.1 million in earnings over the same time
last year.
   The San Francisco-based forwarder and customs broker blamed the 25
percent drop in earnings on the cost to roll out a new worldwide computer
system and year 2000 programming.
   Net revenue, or sales minus the cost of transportation, for the fiscal
period increased by 3.5 percent to $578 million.
   Fritz reported a net income of $1.2 million for the fourth quarter,
compared to $4.8 million during the same time last year. The company said
its fourth quarter earnings were impacted by a labor expense increase of
6.9 percent to $86.8 million.
   A slowdown of business in Europe and currency fluctuations in Latin
America also affected the company’s earnings. But Fritz said there are
"encouraging signs" of a recovery in the Asian market.