Plum Creek Timber (PCL) 8-K Plum Creek Reports Results for Fourth Quarter and Full Year 2011

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(In Millions, Except Per Share Amounts)	Year Ended December 31,
	2011			2010
REVENUES:
Timber	$	572		$	569
Real Estate	301			336
Manufacturing	273			265
Other	21			20
Total Revenues	1,167			1,190
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	445			421
Real Estate	92			148
Manufacturing	250			236
Other	2			2
Total Cost of Goods Sold	789			807
Selling, General and Administrative	106			95
Total Costs and Expenses	895			902
Other Operating Income (Expense), net	3			9
Operating Income	275			297
Equity Earnings from Timberland Venture	56			57
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	81			80
Interest Expense (Note Payable to Timberland Venture)	58			58
Total Interest Expense, net	139			138
Loss on Extinguishment of Debt	—			(13		)
Income before Income Taxes	192			203
Provision (Benefit) for Income Taxes	(1		)	1
Income from Continuing Operations	193			202
Gain on Sale of Properties, net of tax	—			11
Net Income	$	193		$	213
PER SHARE AMOUNTS:
Income from Continuing Operations – Basic	$	1.19		$	1.25
Income from Continuing Operations – Diluted	$	1.19		$	1.24
Net Income per Share – Basic	$	1.19		$	1.31
Net Income per Share – Diluted	$	1.19		$	1.31
Weighted-Average Number of Shares Outstanding
– Basic	161.7			162.1
– Diluted	162.0			162.3

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(In Millions, Except Per Share Amounts)	Quarter Ended December 31,
	2011			2010
REVENUES:
Timber	$	151		$	140
Real Estate	93			155
Manufacturing	65			57
Other	6			4
Total Revenues	315			356
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	118			104
Real Estate	24			79
Manufacturing	60			52
Other	1			1
Total Cost of Goods Sold	203			236
Selling, General and Administrative	29			25
Total Costs and Expenses	232			261
Other Operating Income (Expense), net	—			—
Operating Income	83			95
Equity Earnings from Timberland Venture	12			13
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	20			21
Interest Expense (Note Payable to Timberland Venture)	15			15
Total Interest Expense, net	35			36
Loss on Extinguishment of Debt	—			(13		)
Income before Income Taxes	60			59
Provision (Benefit) for Income Taxes	(1		)	—
Net Income	$	61		$	59
PER SHARE AMOUNTS:
Net Income per Share – Basic	$	0.38		$	0.37
Net Income per Share – Diluted	$	0.38		$	0.37
Weighted-Average Number of Shares Outstanding
– Basic	161.4			161.6
– Diluted	161.6			161.9

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In Millions, Except Per Share Amounts)	December 31, 2011			December 31, 2010
ASSETS
Current Assets:
Cash and Cash Equivalents	$	254		$	252
Accounts Receivable	28			21
Inventories	48			49
Deferred Tax Asset	6			7
Assets Held for Sale	103			57
Other Current Assets	15			24
	454			410
Timber and Timberlands, net	3,377			3,405
Property, Plant and Equipment, net	138			146
Equity Investment in Timberland Venture	201			201
Deferred Tax Asset	17			10
Investment in Grantor Trusts (at Fair Value)	36			35
Other Assets	36			44
Total Assets	$	4,259		$	4,251
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	352		$	94
Line of Credit	348			166
Accounts Payable	25			25
Interest Payable	26			23
Wages Payable	20			23
Taxes Payable	9			12
Deferred Revenue	27			25
Other Current Liabilities	8			7
	815			375
Long-Term Debt	1,290			1,643
Note Payable to Timberland Venture	783			783
Other Liabilities	108			76
Total Liabilities	2,996			2,877
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, Outstanding (net of Treasury Stock) – 161.3 at December 31, 2011 and 161.6 at December 31, 2010	2			2
Additional Paid-In Capital	2,261			2,243
Retained Earnings (Accumulated Deficit)	(28		)	51
Treasury Stock, at Cost, Common Shares – 26.9 at December 31, 2011 and 26.2 at December 31, 2010	(937		)	(911		)
Accumulated Other Comprehensive Income (Loss)	(35		)	(11		)
Total Stockholders’ Equity	1,263			1,374
Total Liabilities and Stockholders’ Equity	$	4,259		$	4,251

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Year Ended December 31,
(In Millions)	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	193		$	213
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization	96			96
Basis of Real Estate Sold	77			132
Equity Earnings from Timberland Venture	(56		)	(57		)
Distributions from Timberland Venture	56			57
Deferred Income Taxes	—			1
Gain on Sale of Properties and Other Assets	—			(13		)
Loss on Extinguishment of Debt	—			13
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	11			3
Timber Deed Acquired	(5		)	—
Pension Plan Contributions	(3		)	(4		)
Working Capital Changes Impacting Cash Flow:
Income Tax Receivable	(1		)	13
Other Working Capital Changes	(7		)	(17		)
Other	13			12
Net Cash Provided By Operating Activities	374			449
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions)	(70		)	(71		)
Timberlands and Minerals Acquired	(101		)	—
Proceeds from Sale of Properties and Other Assets	—			13
Purchases of Marketable Securities	—			(2		)
Other	—			2
Net Cash Used In Investing Activities	(171		)	(58		)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(272		)	(272		)
Borrowings on Line of Credit	1,921			1,783
Repayments on Line of Credit	(1,739		)	(1,937		)
Proceeds from Issuance of Long-Term Debt	—			575
Debt Issuance Costs	—			(7		)
Principal Payments and Retirement of Long-Term Debt	(95		)	(531		)
Proceeds from Stock Option Exercises	10			2
Acquisition of Treasury Stock	(26		)	(51		)
Net Cash Used In Financing Activities	(201		)	(438		)
Increase (Decrease) In Cash and Cash Equivalents	2			(47		)
Cash and Cash Equivalents:
Beginning of Period	252			299
End of Period	$	254		$	252

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended December 31,
(In Millions)	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	61		$	59
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization	26			24
Basis of Real Estate Sold	20			75
Equity Earnings from Timberland Venture	(12		)	(13		)
Distributions from Timberland Venture	—			1
Deferred Income Taxes	(2		)	—
Loss on Extinguishment of Debt	—			13
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	(3		)	(2		)
Timber Deed Acquired	(5		)	—
Working Capital Changes	(8		)	(16		)
Other	3			(4		)
Net Cash Provided By Operating Activities	80			137
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions)	(27		)	(20		)
Timberlands and Minerals Acquired	(13		)	—
Purchases of Marketable Securities	—			(2		)
Other	—			1
Net Cash Used In Investing Activities	(40		)	(21		)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(67		)	(67		)
Borrowings on Line of Credit	824			278
Repayments on Line of Credit	(778		)	(432		)
Proceeds from Issuance of Long-Term Debt	—			575
Debt Issuance Costs	—			(7		)
Principal Payments and Retirement of Long-Term Debt	(46		)	(478		)
Proceeds from Stock Option Exercises	1			—
Acquisition of Treasury Stock	(10		)	—
Other	(1		)	—
Net Cash Used In Financing Activities	(77		)	(131		)
Increase (Decrease) In Cash and Cash Equivalents	(37		)	(15		)
Cash and Cash Equivalents:
Beginning of Period	291			267
End of Period	$	254		$	252

Exhibit 99.2

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Year Ended December 31,
(In Millions)	2011			2010
Revenues:
Northern Resources	$	233		$	210
Southern Resources	359			377
Real Estate	301			336
Manufacturing	273			265
Other	21			20
Eliminations	(20		)	(18		)
Total Revenues	$	1,167		$	1,190
Operating Income (Loss):
Northern Resources	$	24		$	13
Southern Resources	74			107
Real Estate	195			180
Manufacturing	15			24
Other(A)	21			23
Other Costs and Eliminations, net	(54		)	(50		)
Total Operating Income	$	275		$	297

(A) During the first quarter of 2011, the company received a payment of $2 million for the settlement of a dispute that related to certain mineral rights. During the first quarter of 2010, the company agreed to terminate a land lease, accounted for as an operating lease, for consideration of $5 million from the lessor. The consideration was primarily for the release of mineral rights. These amounts are reported as Other Operating Gain/(Loss) in our Other Segment and are included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

Exhibit 99.2

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Quarter Ended December 31,
(In Millions)	2011			2010
Revenues:
Northern Resources	$	66		$	48
Southern Resources	93			97
Real Estate	93			155
Manufacturing	65			57
Other	6			4
Eliminations	(8		)	(5		)
Total Revenues	$	315		$	356
Operating Income (Loss):
Northern Resources	$	7		$	1
Southern Resources	19			28
Real Estate	61			73
Manufacturing	3			3
Other	5			3
Other Costs and Eliminations, net	(12		)	(13		)
Total Operating Income	$	83		$	95

Exhibit 99.2

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

			2011
			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization		Units
Southern Resources
Sawlog		$/Ton Stumpage	$	20	$	19	$	20	$	20	$	19
Pulpwood		$/Ton Stumpage	$	10	$	9	$	9	$	9	$	9
Northern Resources
Sawlog		$/Ton Delivered	$	69	$	72	$	71	$	67	$	69
Pulpwood		$/Ton Delivered	$	40	$	40	$	42	$	41	$	41
Lumber (1)		$/MBF	$	533	$	529	$	493	$	515	$	518
Plywood (1)		$/MSF	$	371	$	382	$	382	$	379	$	379
Fiberboard (1)		$/MSF	$	608	$	608	$	607	$	611	$	608
Sales Volume
Southern Resources
Sawlog		1,000 Tons	1,286		1,126		1,289		1,268		4,969
Pulpwood		1,000 Tons	1,494		1,592		1,833		1,903		6,822
Total Harvest			2,780		2,718		3,122		3,171		11,791
Northern Resources
Sawlog		1,000 Tons	506		471		661		681		2,319
Pulpwood		1,000 Tons	478		244		500		458		1,680
Total Harvest			984		715		1,161		1,139		3,999
Lumber		MBF	29,250		29,654		29,979		27,042		115,925
Plywood	��	MSF	44,156		44,842		41,632		41,803		172,433
Fiberboard		MSF	40,690		43,070		38,485		37,899		160,144
			2010
			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization		Units
Southern Resources
Sawlog		$/Ton Stumpage	$	23	$	23	$	23	$	22	$	23
Pulpwood		$/Ton Stumpage	$	13	$	12	$	11	$	10	$	12
Northern Resources
Sawlog		$/Ton Delivered	$	59	$	66	$	66	$	62	$	63
Pulpwood		$/Ton Delivered	$	38	$	38	$	39	$	39	$	39
Lumber (1)		$/MBF	$	501	$	522	$	490	$	514	$	507
Plywood (1)		$/MSF	$	352	$	397	$	388	$	374	$	378
Fiberboard (1)		$/MSF	$	588	$	607	$	629	$	598	$	606
Sales Volume
Southern Resources
Sawlog		1,000 Tons	1,274		1,122		1,209		1,416		5,021
Pulpwood		1,000 Tons	1,526		1,448		1,674		1,798		6,446
Total Harvest			2,800		2,570		2,883		3,214		11,467
Northern Resources
Sawlog		1,000 Tons	627		484		537		486		2,134
Pulpwood		1,000 Tons	527		348		517		431		1,823
Total Harvest			1,154		832		1,054		917		3,957
Lumber		MBF	28,791		30,813		29,305		27,181		116,090
Plywood		MSF	45,104		47,002		44,223		36,387		172,716
Fiberboard		MSF	35,347		50,010		39,394		32,266		157,017

(1) Represents prices at mill level.

Exhibit 99.2

Plum Creek Timber Company, Inc.

Land Sale Statistics

(Unaudited)

	2011
	1st Qtr (1)		2nd Qtr (2)		3rd Qtr		4th Qtr (1)		YTD
Acres Sold
Small Non-strategic	2,560		2,695		11,525		5,385		22,165
Large Non-strategic	30,295		—		—		18,155		48,450
Conservation	335		59,425		370		7,295		67,425
HBU/Recreation	7,795		6,320		24,500		8,680		47,295
Development Properties	—		—		20		—		20
Conservation Easements	n/a		n/a		n/a		n/a		n/a
	40,985		68,440		36,415		39,515		185,355
Price per Acre
Small Non-strategic	$	1,015	$	1,125	$	1,230	$	1,345	$	1,220
Large Non-strategic	$	1,405	$	—	$	—	$	3,300	$	2,115
Conservation	$	1,685	$	1,050	$	1,270	$	980	$	1,050
HBU/Recreation	$	2,100	$	2,060	$	1,950	$	2,100	$	2,015
Development Properties	$	—	$	—	$	6,405	$	—	$	6,405
Conservation Easements	$	—	$	—	$	460	$	—	$	460
Revenue, ($ millions)
Small Non-strategic	$	2	$	4	$	14	$	7	$	27
Large Non-strategic	$	43	$	—	$	—	$	60	$	103
Conservation	$	1	$	62	$	—	$	7	$	70
HBU/Recreation	$	16	$	13	$	48	$	19	$	96
Development Properties	$	—	$	—	$	—	$	—	$	—
Conservation Easements	$	—	$	—	$	5	$	—	$	5
	$	62	$	79	$	67	$	93	$	301
Basis of Real Estate Sold (5)	$	19	$	24	$	14	$	19	$	76
	2010
	1st Qtr (3)		2nd Qtr		3rd Qtr		4th Qtr (4)		YTD
Acres Sold
Small Non-strategic	29,640		1,950		10,270		21,375		63,235
Large Non-strategic	24,310		—		—		—		24,310
Conservation	35,120		215		2,870		77,900		116,105
HBU/Recreation	9,080		18,175		9,870		16,140		53,265
Development Properties	730		60		—		55		845
Conservation Easements	n/a		n/a		n/a		n/a		n/a
	98,880		20,400		23,010		115,470		257,760
Price per Acre
Small Non-strategic	$	885	$	1,120	$	1,025	$	1,045	$	970
Large Non-strategic	$	1,320	$	—	$	—	$	—	$	1,320
Conservation	$	545	$	1,450	$	1,865	$	1,245	$	1,050
HBU/Recreation	$	2,125	$	2,210	$	2,335	$	1,950	$	2,140
Development Properties	$	3,050	$	5,985	$	—	$	5,535	$	3,415
Conservation Easements	$	—	$	—	$	—	$	455	$	455
Revenue, ($ millions)
Small Non-strategic	$	26	$	2	$	11	$	22	$	61
Large Non-strategic	$	32	$	—	$	—	$	—	$	32
Conservation	$	19	$	—	$	5	$	98	$	122
HBU/Recreation	$	19	$	41	$	23	$	31	$	114
Development Properties	$	3	$	—	$	—	$	—	$	3
Conservation Easements	$	—	$	—	$	—	$	4	$	4
	$	99	$	43	$	39	$	155	$	336
Basis of Real Estate Sold (5)	$	32	$	11	$	14	$	75	$	132

Exhibit 99.2

Plum Creek Timber Company, Inc.

Notes to Land Sale Statistics

(Unaudited)

(1) During the first quarter of 2011, the company sold 30,300 acres of Large Non-strategic lands located in Mississippi for $42.6 million. During the fourth quarter of 2011, the company sold 18,200 acres of Large Non-strategic lands located in Oregon for $60.0 million.

(2) During the second quarter of 2011, the company's Conservation sales consisted primarily of 26,800 acres in Arkansas and Louisiana and 31,500 acres in Florida.

(3) During the first quarter of 2010, the company sold 24,000 acres of Large Non-strategic lands located in Louisiana for $32 million. In addition, the company sold two larger Conservation properties totaling 35,000 acres in Wisconsin and Arkansas and an aggregation of 23,000 acres of Small Non-strategic timberlands located primarily in the Lake States region.

(4) During the fourth quarter of 2010, the company sold 69,600 acres in Montana to a conservation buyer for $88.8 million. The sale is presented as a Conservation sale. The transaction included 60,900 acres of Conservation property and 8,700 acres of HBU property.

(5) Includes $13 million in the first quarter of 2011 from a 30,300 acre Large Non-strategic sale in Mississippi, $52 million in the fourth quarter of 2010 from a 69,600 acre Conservation sale in Montana, and $7 million in the first quarter of 2010 for a 24,000 acre Large Non-strategic sale in Louisiana.

Exhibit 99.2

Plum Creek Timber Company, Inc.

Debt Maturities Schedule

December 31, 2011

(Unaudited)

	Borrowings
	Principal		Weighted Avg. Interest Rate
Quarterly Maturities through 2012:
3rd Qtr 2012	$	350	—	%	(1)
4th Qtr 2012	$	3	8.050	%
Annual Maturities through 2014:
2013	$	250	6.663	%	(2)
2014	$	3	8.050	%

(1) Represents the company's term credit agreement. As of December 31, 2011, the interest rate is based on LIBOR plus 0.375%.

(2) Principal amount composed of senior notes with principal amounts of $3 million, $73 million and $174 million and interest rates of 8.050%, 7.760% and 6.180%, respectively.

Exhibit 99.2

Plum Creek Timber Company, Inc.

Acreage Ownership by State

December 31, 2011

(Unaudited)

Alabama	113,000
Arkansas	724,000
Florida	520,000
Georgia	772,000
Louisiana	418,000
Maine	883,000
Michigan	582,000
Mississippi	602,000
Montana	899,000
New Hampshire	30,000
North Carolina	4,000
Oklahoma	6,000
Oregon	402,000
South Carolina	175,000
Texas	34,000
Vermont	86,000
Washington	90,000
West Virginia	111,000
Wisconsin	188,000
Total	6,639,000