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

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Six Months Ended
	June 30, 2007			June 30, 2006
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	399		$	407
Real Estate		110			113
Manufacturing		244			264
Other		11			10
Total Revenues		764			794
Costs and Expenses:
Cost of Goods Sold:
Timber		258			234
Real Estate		40			41
Manufacturing		236			240
Other		1			1
Total Cost of Goods Sold		535			516
Selling, General and Administrative		59			54
Total Costs and Expenses		594			570
Other Operating Income (Expense), net		1			2
Operating Income		171			226
Interest Expense, net		71			65
Income before Income Taxes		100			161
Provision (Benefit) for Income Taxes		(3	)		7
Income From Continuing Operations		103			154
Gain on Sale of Properties, net of tax		2			—
Income Before Cumulative Effect of Accounting Change		105			154
Cumulative Effect of Accounting Change, net of tax		—			2
Net Income	$	105		$	156
Income From Continuing Operations per Share
—Basic	$	0.58		$	0.84
—Diluted	$	0.58		$	0.84
Net Income per Share
—Basic	$	0.59		$	0.85
—Diluted	$	0.59		$	0.85
Weighted Average Number of Shares Outstanding
—Basic		176.4			183.2
—Diluted		176.8			183.7

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Quarter Ended
	June 30, 2007			June 30, 2006
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	190		$	193
Real Estate		71			52
Manufacturing		129			130
Other		5			5
Total Revenues		395			380
Costs and Expenses:
Cost of Goods Sold:
Timber		124			113
Real Estate		23			25
Manufacturing		123			117
Other		—			—
Total Cost of Goods Sold		270			255
Selling, General and Administrative		30			26
Total Costs and Expenses		300			281
Other Operating Income (Expense), net		(1	)		—
Operating Income		94			99
Interest Expense, net		35			34
Income before Income Taxes		59			65
Provision for Income Taxes		1			3
Income from Continuing Operations		58			62
Gain on Sale of Properties, net of tax		2			—
Net Income	$	60		$	62
Income from Continuing Operations per Share
—Basic	$	0.33		$	0.34
—Diluted	$	0.33		$	0.34
Net Income per Share
—Basic	$	0.34		$	0.34
—Diluted	$	0.34		$	0.34
Weighted Average Number of Shares Outstanding
—Basic		175.7			182.3
—Diluted		176.1			182.8

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	June 30,       2007			December 31, 2006
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	107		$	273
Restricted Advance from Customer		—			4
Accounts Receivable		47			40
Like-Kind Exchange Funds Held in Escrow		58			—
Inventories		75			83
Deferred Tax Asset		7			7
Real Estate Development Properties		4			3
Assets Held for Sale		86			82
Other Current Assets		20			21
		404			513
Timber and Timberlands—Net		3,836			3,876
Property, Plant and Equipment—Net		206			216
Investment in Grantor Trusts		26			28
Other Assets		34			28
Total Assets	$	4,506		$	4,661
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	72		$	125
Accounts Payable		42			42
Interest Payable		29			30
Wages Payable		18			27
Taxes Payable		22			24
Deferred Revenue		12			17
Other Current Liabilities		15			16
		210			281
Long-Term Debt		1,920			1,617
Line of Credit		345			581
Deferred Tax Liability		20			25
Other Liabilities		68			68
Total Liabilities		2,563			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)—174.6 at June 30, 2007, and 177.1 at December 31, 2006		2			2
Additional Paid-In Capital		2,199			2,190
Retained Earnings		170			214
Treasury Stock, at cost, Common Shares—12.3 at June 30, 2007, and 9.5 at December 31, 2006		(418	)		(307	)
Accumulated Other Comprehensive Income (Loss)		(10	)		(10	)
Total Stockholders’ Equity		1,943			2,089
Total Liabilities and Stockholders’ Equity	$	4,506		$	4,661

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended
	June 30, 2007			June 30, 2006
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	105		$	156
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization		65			60
Basis of Real Estate Sold		23			23
Deferred Income Taxes		(5	)		—
Gain on Sales of Properties and Other Assets		(2	)		—
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		(58	)		20
Other Working Capital Changes		(14	)		(6	)
Expenditures for Real Estate Development		(6	)		(2	)
Other		3			1
Net Cash Provided By Operating Activities		111			252
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(33	)		(36	)
Timberlands Acquired		(9	)		(17	)
Proceeds from Sales of Properties and Other Assets		2			1
Other		2			(3	)
Net Cash Used In Investing Activities		(38	)		(55	)
Cash Flows From Financing Activities:
Dividends		(149	)		(147	)
Borrowings on Line of Credit		1,596			1,474
Repayments on Line of Credit		(1,832	)		(1,453	)
Repayment of Short-Term Debt		—			(50	)
Proceeds from Issuance of Long-Term Debt		350			216
Principal Payments and Retirement of Long-Term Debt		(99	)		(29	)
Proceeds from Stock Option Exercises		6			3
Acquisition of Treasury Stock		(111	)		(184	)
Net Cash Used In Financing Activities		(239	)		(170	)
Increase (Decrease) In Cash and Cash Equivalents		(166	)		27
Cash and Cash Equivalents:
Beginning of Period		273			369
End of Period	$	107		$	396

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended
	June 30, 2007			June 30, 2006
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	60		$	62
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization		32			29
Basis of Real Estate Sold		14			13
Deferred Income Taxes		(2	)		(1	)
Gain on Sale of Properties and Other Assets		(2	)		—
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		(48	)		(9	)
Other Working Capital Changes		17			14
Expenditures for Real Estate Development		(4	)		(2	)
Other		6			6
Net Cash Provided By Operating Activities		73			112
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(22	)		(19	)
Timberlands Acquired		(9	)		(17	)
Proceeds from Sales of Properties and Other Assets		2			1
Other		—			(3	)
Net Cash Used In Investing Activities		(29	)		(38	)
Cash Flows From Financing Activities:
Dividends		(74	)		(73	)
Borrowings on Line of Credit		947			811
Repayments on Line of Credit		(1,255	)		(790	)
Repayment of Short-Term Debt		—			(50	)
Proceeds from Issuance of Long-Term Debt		350			216
Principal Payments and Retirement of Long-Term Debt		(27	)		(28	)
Proceeds from Stock Option Exercises		1			1
Acquisition of Treasury Stock		(89	)		(184	)
Net Cash Used In Financing Activities		(147	)		(97	)
Decrease In Cash and Cash Equivalents		(103	)		(23	)
Cash and Cash Equivalents:
Beginning of Period		210			419
End of Period	$	107		$	396

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Six Months 2007			Six Months 2006
	(In Millions)
Revenues:
Northern Resources	$	178		$	202
Southern Resources		253			243
Real Estate		110			113
Manufacturing		244			264
Other		11			10
Eliminations		(32	)		(38	)
Total Revenues	$	764		$	794
Operating Income (Loss)
Northern Resources	$	33		$	56
Southern Resources		87			98
Real Estate		68			71
Manufacturing		1			18
Other		10			9
Other Costs and Eliminations		(28	)		(26	)
Total Operating Income	$	171		$	226

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Second Quarter 2007			Second Quarter 2006
	(In Millions)
Revenues:
Northern Resources	$	79		$	87
Southern Resources		126			121
Real Estate		71			52
Manufacturing		129			130
Other		5			5
Eliminations		(15	)		(15	)
Total Revenues	$	395		$	380
Operating Income (Loss)
Northern Resources	$	14		$	21
Southern Resources		41			48
Real Estate		47			27
Manufacturing		2			10
Other		5			4
Other Costs and Eliminations		(15	)		(11	)
Total Operating Income	$	94		$	99

Plum Creek Timber Company, Inc.

Selected Operating Statistics

(Unaudited)

		2007						2006
		1st Qtr		2nd Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	32	$	31	$	31	$	35	$	36	$	33	$	33	$	34
Pulpwood	$/Ton Stumpage	$	9	$	9	$	9	$	8	$	8	$	7	$	8	$	8
Northern Resources
Sawlog	$/Ton Delivered	$	71	$	76	$	73	$	77	$	78	$	81	$	74	$	77
Pulpwood	$/Ton Delivered	$	37	$	38	$	38	$	37	$	37	$	38	$	37	$	37
Lumber (1)	$/MBF	$	390	$	400	$	395	$	467	$	456	$	410	$	385	$	431
Plywood (1)	$/MSF	$	398	$	407	$	402	$	452	$	455	$	431	$	407	$	437
Fiberboard (1)	$/MSF	$	490	$	529	$	510	$	445	$	480	$	518	$	506	$	486
Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,681		1,691		3,372		1,749		1,685		1,548		1,629		6,611
Pulpwood	1,000 Tons		1,954		1,901		3,855		1,642		1,651		1,917		2,319		7,529
Total Harvest			3,635		3,592		7,227		3,391		3,336		3,465		3,948		14,140
Northern Resources
Sawlog	1,000 Tons		960		789		1,749		1,151		877		954		1,093		4,075
Pulpwood	1,000 Tons		819		527		1,346		766		517		734		725		2,742
Total Harvest			1,779		1,316		3,095		1,917		1,394		1,688		1,818		6,817
Lumber	MBF		95,265		95,701		190,966		99,367		97,059		93,925		86,880		377,231
Plywood	MSF		72,582		72,454		145,036		75,769		71,269		70,109		60,845		277,992
Fiberboard	MSF		64,872		65,938		130,810		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		2nd Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		8,645		21,255		29,900		15,050		11,765		19,040		14,240		60,095
Large Non-strategic		—		—		—		—		—		—		—		—
Conservation		4,210		480		4,690		2,580		2,185		4,600		15,020		24,385
HBU/Recreation		3,750		8,695		12,445		3,095		7,225		7,875		4,575		22,770
Development Properties		45		595		640		1,075		645		1,970		635		4,325
Conservation Easements		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
		16,650		31,025		47,675		21,800		21,820		33,485		34,470		111,575
Price per Acre
Small Non-strategic	$	1,445	$	1,295	$	1,340	$	1,465	$	1,270	$	1,765	$	1,730	$	1,585
Large Non-strategic		—		—		—		—		—		—		—		—
Conservation	$	1,740	$	6,660	$	2,240	$	2,085	$	1,500	$	3,865	$	990	$	1,695
HBU/Recreation	$	4,300	$	3,150	$	3,495	$	5,310	$	4,140	$	3,775	$	3,620	$	4,070
Development Properties	$	22,045	$	21,260	$	21,310	$	8,595	$	5,295	$	21,950	$	14,995	$	15,125
Conservation Easements		—		—		—	$	1,300		—	$	605		—	$	885
Revenue, ($ millions)
Small Non-strategic	$	13	$	28	$	41	$	22	$	15	$	33	$	26	$	96
Large Non-strategic		—		—		—		—		—		—		—		—
Conservation	$	7	$	3	$	10	$	5	$	3	$	18	$	15	$	41
HBU/Recreation	$	16	$	27	$	43	$	17	$	30	$	30	$	16	$	93
Development Properties	$	1	$	13	$	14	$	9	$	4	$	43	$	9	$	65
Conservation Easements		—		—		—	$	8		—	$	5		—	$	13
	$	37	$	71	$	108	$	61	$	52	$	129	$	66	$	308
Proceeds from Joint Ventures(1)	$	2		—	$	2		—		—		—		—		—
Basis of Real Estate Sold ($ millions)	$	9	$	14	$	23	$	10	$	13	$	43	$	19	$	85

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