West Fraser Timber Co Ltd claims it is on course to achieve its three-year target of C$80m in annual savings arising from the takeover of Weldwood of Canada Ltd.
Synergies and systems integration will help achieve the savings according to West Fraser chairman, president and chief executive Hank Ketcham who said some “tough decisions” had already been made.
West Fraser earned fourth quarter profits of C$40.6m in 2004 compared with C$34.3m in the same period in 2003.
Quarterly sales increased to C$552m from C$467m, with increases in all business segments.
As part of the Weldwood acquisition, West Fraser agreed to sell two sawmills and give up timber rights in the Cariboo region under an agreement with the federal Competition Bureau.
This is now being challenged by the Burns Lake National Development Corp which is asking for the agreement to be altered or rescinded.
