previous year to $2.42 million, the company announced yesterday.

The improvement was due to both increased operating earnings and a reduction in the amount reserved for Salem move costs.

Earnings from operations amounted to $2.77 million for the year, compared to $2.16 million in 1997 while the provision for relocation costs in 1998 was $350,000 -- well down on the $715,000 in 1997.

The improved operating earnings was primarily due to a healthy growth in cargo volume and freight revenue -- volume was up ten percent on the previous year while freight revenue grew at 8.5 percent.

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