Plum Creek Timber (PCL) 8-K Plum Creek Timber Company, Inc. Reports Results for First Quarter 2007

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Quarter Ended
	March 31, 2007			March 31, 2006
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	209		$	214
Real Estate		39			61
Manufacturing		115			134
Other		6			5
Total Revenues		369			414
Costs and Expenses:
Cost of Goods Sold:
Timber		134			121
Real Estate		17			16
Manufacturing		113			123
Other		1			1
Total Cost of Goods Sold		265			261
Selling, General and Administrative		29			28
Total Costs and Expenses		294			289
Other Operating Income (Expense), net		2			2
Operating Income		77			127
Interest Expense, net		36			31
Income before Income Taxes		41			96
Provision (Benefit) for Income Taxes		(4	)		4
Income From Continuing Operations		45			92
Cumulative Effect of Accounting Change, net of tax		—			2
Net Income	$	45		$	94
Income From Continuing Operations per Share
- Basic	$	0.26		$	0.50
- Diluted	$	0.25		$	0.50
Net Income per Share
- Basic	$	0.26		$	0.51
- Diluted	$	0.25		$	0.51
Weighted Average Number of Shares Outstanding
- Basic		177.1			184.2
- Diluted		177.5			184.7

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	March 31, 2007			December 31, 2006
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	210		$	273
Restricted Advance from Customer		—			4
Accounts Receivable		44			40
Like-Kind Exchange Funds Held in Escrow		10			—
Inventories		86			83
Deferred Tax Asset		7			7
Real Estate Development Properties		5			3
Assets Held for Sale		84			82
Other Current Assets		20			21
		466			513
Timber and Timberlands - Net		3,850			3,876
Property, Plant and Equipment - Net		210			216
Investment in Grantor Trusts		25			28
Other Assets		29			28
Total Assets	$	4,580		$	4,661
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	100		$	125
Accounts Payable		36			42
Interest Payable		40			30
Wages Payable		12			27
Taxes Payable		16			24
Deferred Revenue		8			17
Other Current Liabilities		15			16
		227			281
Long-Term Debt		1,570			1,617
Lines of Credit		653			581
Deferred Tax Liability		22			25
Other Liabilities		64			68
Total Liabilities		2,536			2,572
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) - 176.8 at March 31, 2007, and 177.1 at December 31, 2006		2			2
Additional Paid-In Capital		2,197			2,190
Retained Earnings		184			214
Treasury Stock, at cost, Common Shares - 10.1 at March 31, 2007, and 9.5 at December 31, 2006		(329	)		(307	)
Accumulated Other Comprehensive Income (Loss)		(10	)		(10	)
Total Stockholders’ Equity		2,044			2,089
Total Liabilities and Stockholders’ Equity	$	4,580		$	4,661

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended
	March 31, 2007			March 31, 2006
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	45		$	94
Adjustments to Reconcile Net Income to
Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization		33			31
Basis of Real Estate Sold		9			10
Deferred Income Taxes		(3	)		1
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		(10	)		29
Other Working Capital Changes		(31	)		(20	)
Expenditures for Real Estate Development		(2	)		—
Other		(3	)		(5	)
Net Cash Provided By Operating Activities		38			140
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(11	)		(17	)
Other		2			—
Net Cash Used In Investing Activities		(9	)		(17	)
Cash Flows From Financing Activities:
Dividends		(75	)		(74	)
Borrowings on Line of Credit		649			663
Repayments on Line of Credit		(577	)		(663	)
Principal Payments and Retirement of Long-Term Debt		(72	)		—
Proceeds from Stock Option Exercises		5			2
Acquisition of Treasury Stock		(22	)		—
Other		—			(1	)
Net Cash Used In Financing Activities		(92	)		(73	)
Increase (Decrease) In Cash and Cash Equivalents		(63	)		50
Cash and Cash Equivalents:
Beginning of Period		273			369
End of Period	$	210		$	419

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	First Quarter 2007			First Quarter 2006
	(In Millions)
Revenues:
Northern Resources	$	99		$	115
Southern Resources		127			122
Real Estate		39			61
Manufacturing		115			134
Other		6			5
Eliminations		(17	)		(23	)
Total Revenues	$	369		$	414
Operating Costs, Expenses and Other:
Northern Resources	$	80		$	80
Southern Resources		81			72
Real Estate		18			17
Manufacturing		116			126
Other		1			—
Other Costs and Eliminations		(4	)		(8	)
Total Costs, Expenses and Other	$	292		$	287
Operating Income (Loss)
Northern Resources	$	19		$	35
Southern Resources		46			50
Real Estate		21			44
Manufacturing		(1	)		8
Other		5			5
Other Costs and Eliminations		(13	)		(15	)
Total Operating Income	$	77		$	127

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

		2007		2006
		1st Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	32	$	35	$	36	$	33	$	33	$	34
Pulpwood	$/Ton Stumpage	$	9	$	8	$	8	$	7	$	8	$	8
Northern Resources
Sawlog	$/Ton Delivered	$	71	$	77	$	78	$	81	$	74	$	77
Pulpwood	$/Ton Delivered	$	37	$	37	$	37	$	38	$	37	$	37
Lumber (1)	$/MBF	$	390	$	467	$	456	$	410	$	385	$	431
Plywood (1)	$/MSF	$	398	$	452	$	455	$	431	$	407	$	437
Fiberboard (1)	$/MSF	$	490	$	445	$	480	$	518	$	506	$	486
Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,681		1,749		1,685		1,548		1,629		6,611
Pulpwood	1,000 Tons		1,954		1,642		1,651		1,917		2,319		7,529
Total Harvest			3,635		3,391		3,336		3,465		3,948		14,140
Northern Resources
Sawlog	1,000 Tons		960		1,151		877		954		1,093		4,075
Pulpwood	1,000 Tons		819		766		517		734		725		2,742
Total Harvest			1,779		1,917		1,394		1,688		1,818		6,817
Lumber	MBF		95,265		99,367		97,059		93,925		86,880		377,231
Plywood	MSF		72,582		75,769		71,269		70,109		60,845		277,992
Fiberboard	MSF		64,872		69,076		70,411		63,698		51,502		254,687

(1) Represents prices at mill level.

Plum Creek Timber Company, Inc.

Land Sale Statistics

(Unaudited)

	2007		2006
	1st Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		8,645		15,050		11,765		19,040		14,240		60,095
Large Non-strategic		—		—		—		—		—		—
Conservation		4,210		2,580		2,185		4,600		15,020		24,385
HBU/Recreation		3,750		3,095		7,225		7,875		4,575		22,770
Development Properties		45		1,075		645		1,970		635		4,325
Conservation Easements		n/a		n/a		n/a		n/a		n/a		n/a
		16,650		21,800		21,820		33,485		34,470		111,575
Price per Acre
Small Non-strategic	$	1,445	$	1,465	$	1,270	$	1,765	$	1,730	$	1,585
Large Non-strategic		—		—		—		—		—		—
Conservation	$	1,740	$	2,085	$	1,500	$	3,865	$	990	$	1,695
HBU/Recreation	$	4,300	$	5,310	$	4,140	$	3,775	$	3,620	$	4,070
Development Properties	$	22,045	$	8,595	$	5,295	$	21,950	$	14,995	$	15,125
Conservation Easements		—	$	1,300		—	$	605		—	$	885
Revenue, ($ millions)
Small Non-strategic	$	13	$	22	$	15	$	33	$	26	$	96
Large Non-strategic		—		—		—		—		—		—
Conservation	$	7	$	5	$	3	$	18	$	15	$	41
HBU/Recreation	$	16	$	17	$	30	$	30	$	16	$	93
Development Properties	$	1	$	9	$	4	$	43	$	9	$	65
Conservation Easements		—	$	8		—	$	5		—	$	13
	$	37	$	61	$	52	$	129	$	66	$	308
Proceeds from Joint Ventures (1)	$	2		—		—		—		—		—
Basis of Real Estate Sold	$	9	$	10	$	13	$	43	$	19	$	85
($ millions)

(1) Not reflected in the Land Sale Statistics (Acres Sold, Price per Acre and Revenue)