Plum Creek Timber (PCL) 8-K Results of Operations and Financial Condition

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Quarter Ended
	March 31, 2006			March 31, 2005
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	214		$	200
Real Estate		61			68
Manufacturing		134			129
Other		5			3
Total Revenues		414			400
Costs and Expenses:
Cost of Goods Sold:
Timber		121			102
Real Estate		16			24
Manufacturing		123			118
Other		1			1
Total Cost of Goods Sold		261			245
Selling, General and Administrative		26			21
Total Costs and Expenses		287			266
Operating Income		127			134
Interest Expense, net		31			27
Income before Income Taxes		96			107
Provision for Income Taxes		4			5
Income from Continuing Operations		92			102
Gain on Sale of Properties, net of tax		--			20
Net Income Before Cumulative Effect of Accounting Change		92			122
Cumulative Effect of Accounting Change, net of tax		2			--
Net Income	$	94		$	122
Income from Continuing Operations per Share
- Basic	$	0.5	0	$	0.5	6
- Diluted	$	0.5	0	$	0.5	6
Net Income per Share
- Basic	$	0.5	1	$	0.6	7
- Diluted	$	0.5	1	$	0.6	6
Weighted Average Number of Shares Outstanding
- Basic		184.	2		183.	9
- Diluted		184.	7		184.	5

PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

	March 31, 2006			December 31, 2005
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	419		$	369
Restricted Advance from Customer		32			23
Accounts Receivable		50			44
Like-Kind Exchange Funds Held in Escrow		1			30
Inventories		78			75
Deferred Tax Asset		17			17
Other Current Assets		16			16
		613			574
Timber and Timberlands - Net		3,942			3,961
Property, Plant and Equipment - Net		229			234
Investment in Grantor Trusts		26			26
Other Assets		16			17
Total Assets	$	4,826		$	4,812
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	232		$	161
Short-Term Debt		50			50
Accounts Payable		36			45
Interest Payable		41			30
Wages Payable		11			25
Taxes Payable		19			18
Deferred Revenue		42			35
Other Current Liabilities		13			11
		444			375
Long-Term Debt		1,452			1,524
Lines of Credit		495			495
Deferred Tax Liability		40			39
Other Liabilities		47			54
Total Liabilities		2,478			2,487
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Preferred Stock, $0.01 par value, authorized shares - 75.0,
outstanding - none		--			--
Common Stock, $0.01 par value, authorized shares - 300.6,
issued (including Treasury Stock) - 186.4 at March 31, 2006,
and 186.2 at December 31, 2005		2			2
Additional Paid-In Capital		2,186			2,181
Retained Earnings		206			186
Treasury Stock, at cost, Common Shares - 2.0		(44	)		(44	)
Other Equity		(2	)		--
Total Stockholders' Equity		2,348			2,325
Total Liabilities and Stockholders' Equity	$	4,826		$	4,812

PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Quarter Ended
	March 31, 2006			March 31, 2005
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	94		$	122
Adjustments to Reconcile Net Income to
Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization		31			27
Basis of Real Estate Sold		10			18
Deferred Income Taxes		1			(1	)
Gain on Sale of Properties		--			(21	)
Working Capital Changes		9			(64	)
Other		(5	)		(2	)
Net Cash Provided By Operating Activities		140			79
Cash Flows From Investing Activities:
Capital Expenditures(Excluding Timberland Acquisitions)		(17	)		(10	)
Other		--			1
Net Cash Used In Investing Activities		(17	)		(9	)
Cash Flows From Financing Activities:
Dividends		(74	)		(70	)
Borrowings on Line of Credit		663			529
Repayments on Line of Credit		(663	)		(529	)
Proceeds from Stock Option Exercises		2			3
Other		(1	)		(1	)
Net Cash Used In Financing Activities		(73	)		(68	)
Increase In Cash and Cash Equivalents		50			2
Cash and Cash Equivalents:
Beginning of Period		369			347
End of Period	$	419		$	349

Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)

	First Quarter 2006			First Quarter 2005
	(In Millions)
Revenues:
Northern Resources	$	115		$	88
Southern Resources		122			131
Real Estate		61			68
Manufacturing		134			129
Other		5			3
Eliminations		(23	)		(19	)
Total Revenues	$	414		$	400
Operating Costs and Expenses:
Northern Resources	$	80		$	59
Southern Resources		72			68
Real Estate		17			25
Manufacturing		126			121
Other		--			1
Other Costs and Eliminations		(8	)		(8	)
Total Costs and Expenses	$	287		$	266
Operating Income (Loss)
Northern Resources	$	35		$	29
Southern Resources		50			63
Real Estate		44			43
Manufacturing		8			8
Other		5			2
Other Costs and Eliminations		(15	)		(11	)
Total Operating Income	$	127		$	134

Plum Creek Timber Company, Inc.
Selected Operating Statistics
(Unaudited)

		2006		2005
		1st Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	35	$	38	$	38	$	36	$	37	$	37
Pulpwood	$/Ton Stumpage	$	8	$	9	$	9	$	8	$	7	$	8
Northern Resources
Sawlog	$/Ton Delivered	$	77	$	76	$	77	$	79	$	77	$	77
Pulpwood	$/Ton Delivered	$	37	$	37	$	37	$	39	$	38	$	38
Lumber (1)	$/MBF	$	467	$	483	$	459	$	440	$	435	$	454
Plywood (1)	$/MSF	$	452	$	419	$	422	$	418	$	444	$	425
Fiberboard (1)	$/MSF	$	445	$	449	$	458	$	441	$	434	$	446
Sales Volume
Southern Resources
��  Sawlog	1,000 Tons		1,749		1,899		1,899		1,553		1,624		6,975
Pulpwood	1,000 Tons		1,642		1,592		1,825		1,690		1,696		6,803
Total Harvest			3,391		3,491		3,724		3,243		3,320		13,778
Northern Resources
Sawlog	1,000 Tons		1,151		906		774		898		1,011		3,589
Pulpwood	1,000 Tons		766		499		319		467		529		1,814
Total Harvest			1,917		1,405		1,093		1,365		1,540		5,403
Lumber	MBF		99,367		102,857		105,028		103,099		96,003		406,987
Plywood	MSF		75,769		75,483		75,235		76,692		71,115		298,525
Fiberboard	MSF		69,076		61,806		61,843		62,231		62,407		248,287

(1) Represents prices at mill level.

Plum Creek Timber Company, Inc.
Land Sale Statistics
(Unaudited)

	2006		2005
	1st Qtr		1st Qtr		2nd Qtr			3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		15,050		18,525		13,315			85,610		30,750		148,200
Large Non-strategic		--		--		625	*		--		39,375		40,000
Conservation		1,815		8,650		450			11,600		1,900		22,600
HBU/Recreation		3,860		9,100		4,510			5,620		1,770		21,000
Development Properties		1,075		20		140			20		20		200
Conservation Easements		n/a		n/a		n/a			n/a		n/a		n/a
		21,800		36,295		19,040			102,850		73,815		232,000
Price per Acre
Small Non-strategic	$	1,465	$	1,225	$	1,425		$	1,050	$	905	$	1,075
Large Non-strategic		--		--	$	1,820			--	$	763	$	780
Conservation	$	1,475	$	1,550	$	3,225		$	760	$	1,225	$	1,151
HBU/Recreation	$	4,960	$	2,600	$	2,550		$	3,030	$	3,905	$	2,814
Development Properties	$	8,595	$	23,500	$	13,785		$	14,300	$	10,700	$	14,500
Conservation Easements	$	1,300	$	427		--			--	$	490	$	450
Revenue  ($ millions)
Small Non-strategic	$	22	$	23	$	19		$	90	$	28	$	160
Large Non-strategic		--		--	$	1			--	$	30	$	31
Conservation	$	3	$	13	$	2		$	9	$	2	$	26
HBU/Recreation	$	19	$	24	$	11		$	17	$	7	$	59
Development Properties	$	9		--	$	3			--		--	$	3
Conservation Easements	$	8	$	8		--			--	$	5	$	13
	$	61	$	68	$	36		$	116	$	72	$	292
Basis of Real Estate Sold	$	10	$	18	$	10		$	54	$	42	$	124
($ millions)

* Represents the completion of the sale of our Pennsylvania properties. Initial sale was in 2004.