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

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Nine Months Ended
	September 30, 2007			September 30, 2006
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	589		$	603
Real Estate		204			242
Manufacturing		363			388
Other		15			15
Total Revenues		1,171			1,248
Costs and Expenses:
Cost of Goods Sold:
Timber		391			361
Real Estate		72			96
Manufacturing		349			353
Other		2			2
Total Cost of Goods Sold		814			812
Selling, General and Administrative		88			78
Total Costs and Expenses		902			890
Other Operating Income (Expense), net		—			2
Operating Income		269			360
Interest Expense, net		109			98
Income before Income Taxes		160			262
Provision (Benefit) for Income Taxes		(2	)		16
Income From Continuing Operations		162			246
Gain on Sale of Properties, net of tax		2			—
Income Before Cumulative Effect of Accounting Change		164			246
Cumulative Effect of Accounting Change, net of tax		—			2
Net Income	$	164		$	248
Per Share Amounts:
Income From Continuing Operations per Share
- Basic	$	0.93		$	1.35
- Diluted	$	0.92		$	1.35
Net Income per Share
- Basic	$	0.94		$	1.36
- Diluted	$	0.93		$	1.36
Weighted Average Number of Shares Outstanding
- Basic		175.3			181.7
- Diluted		175.7			182.1

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Quarter Ended
	September 30, 2007			September 30, 2006
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	190		$	196
Real Estate		94			129
Manufacturing		119			124
Other		4			5
Total Revenues		407			454
Costs and Expenses:
Cost of Goods Sold:
Timber		133			127
Real Estate		32			55
Manufacturing		113			113
Other		1			1
Total Cost of Goods Sold		279			296
Selling, General and Administrative		29			24
Total Costs and Expenses		308			320
Other Operating Income (Expense), net		(1	)		—
Operating Income		98			134
Interest Expense, net		38			33
Income before Income Taxes		60			101
Provision for Income Taxes		1			9
Net Income	$	59		$	92
Per Share Amounts:
Net Income per Share
- Basic	$	0.34		$	0.51
- Diluted	$	0.34		$	0.51
Weighted Average Number of Shares Outstanding
- Basic		173.2			178.5
- Diluted		173.6			178.9

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	September 30, 2007			December 31, 2006
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	168		$	273
Restricted Advance from Customer		—			4
Accounts Receivable		49			40
Like-Kind Exchange Funds Held in Escrow		13			—
Inventories		73			83
Deferred Tax Asset		7			7
Real Estate Development Properties		5			3
Assets Held for Sale		70			82
Other Current Assets		22			21
		407			513
Timber and Timberlands - Net		3,918			3,876
Property, Plant and Equipment - Net		202			216
Investment in Grantor Trusts		26			28
Other Assets		30			28
Total Assets	$	4,583		$	4,661
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	47		$	125
Accounts Payable		48			42
Interest Payable		40			30
Wages Payable		19			27
Taxes Payable		28			24
Deferred Revenue		19			17
Other Current Liabilities		17			16
		218			281
Long-Term Debt		1,919			1,617
Line of Credit		514			581
Deferred Tax Liability		18			25
Other Liabilities		74			68
Total Liabilities		2,743			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) - 172.3 at September 30, 2007, and 177.1 at December 31, 2006		2			2
Additional Paid-In Capital		2,201			2,190
Retained Earnings		156			214
Treasury Stock, at cost, Common Shares - 14.6 at September 30, 2007, and 9.5 at December 31, 2006		(509	)		(307	)
Accumulated Other Comprehensive Income (Loss)		(10	)		(10	)
Total Stockholders' Equity		1,840			2,089
Total Liabilities and Stockholders' Equity	$	4,583		$	4,661

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended
	September 30, 2007			September 30, 2006
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	164		$	248
Adjustments to Reconcile Net Income to
Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $4 Loss Related to Forest Fires in 2007)		102			94
Basis of Real Estate Sold		45			66
Deferred Income Taxes		(7	)		8
Gain on Sales of Properties and Other Assets		(2	)		—
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		(13	)		(10	)
Other Working Capital Changes		18			18
Expenditures for Real Estate Development		(13	)		(5	)
Other		10			1
Net Cash Provided By Operating Activities		304			420
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(59	)		(60	)
Timberlands Acquired		(96	)		(22	)
Proceeds from Sales of Properties and Other Assets		3			1
Other		2			(4	)
Net Cash Used In Investing Activities		(150	)		(85	)
Cash Flows From Financing Activities:
Dividends		(222	)		(219	)
Borrowings on Line of Credit		2,179			2,167
Repayments on Line of Credit		(2,246	)		(2,144	)
Repayment of Short-Term Debt		—			(50	)
Proceeds from Issuance of Long-Term Debt		350			216
Principal Payments and Retirement of Long-Term Debt		(125	)		(29	)
Proceeds from Stock Option Exercises		7			6
Acquisition of Treasury Stock		(202	)		(262	)
Net Cash Used In Financing Activities		(259	)		(315	)
Increase (Decrease) In Cash and Cash Equivalents		(105	)		20
Cash and Cash Equivalents:
Beginning of Period		273			369
End of Period	$	168		$	389

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended
	September 30, 2007			September 30, 2006
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	59		$	92
Adjustments to Reconcile Net Income to
Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $4 Loss Related to Forest Fires in 2007)		37			34
Basis of Real Estate Sold		22			43
Deferred Income Taxes		(2	)		8
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		45			(30	)
Other Working Capital Changes		32			24
Expenditures for Real Estate Development		(7	)		(3	)
Other		7			—
Net Cash Provided By Operating Activities		193			168
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(26	)		(24	)
Timberlands Acquired		(87	)		(5	)
Proceeds from Sales of Properties and Other Assets		1			—
Other		—			(1	)
Net Cash Used In Investing Activities		(112	)		(30	)
Cash Flows From Financing Activities:
Dividends		(73	)		(72	)
Borrowings on Line of Credit		583			693
Repayments on Line of Credit		(414	)		(691	)
Principal Payments and Retirement of Long-Term Debt		(26	)		—
Proceeds from Stock Option Exercises		1			3
Acquisition of Treasury Stock		(91	)		(78	)
Net Cash Used In Financing Activities		(20	)		(145	)
Increase (Decrease) In Cash and Cash Equivalents		61			(7	)
Cash and Cash Equivalents:
Beginning of Period		107			396
End of Period	$	168		$	389

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Nine Months 2007			Nine Months 2006
	(In Millions)
Revenues:
Northern Resources	$	264		$	308
Southern Resources		374			358
Real Estate		204			242
Manufacturing		363			388
Other		15			15
Eliminations		(49	)		(63	)
Total Revenues	$	1,171		$	1,248
Operating Income (Loss)
Northern Resources	$	41		$	81
Southern Resources		126			136
Real Estate		129			143
Manufacturing		3			24
Other		13			13
Other Costs and Eliminations		(43	)		(37	)
Total Operating Income	$	269		$	360

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Third Quarter 2007			Third Quarter 2006
	(In Millions)
Revenues:
Northern Resources	$	86		$	106
Southern Resources		121			115
Real Estate		94			129
Manufacturing		119			124
Other		4			5
Eliminations		(17	)		(25	)
Total Revenues	$	407		$	454
Operating Income (Loss)
Northern Resources	$	8		$	25
Southern Resources		39			38
Real Estate		61			72
Manufacturing		2			6
Other		3			4
Other Costs and Eliminations		(15	)		(11	)
Total Operating Income	$	98		$	134

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

		2007								2006
		1st Qtr		2nd Qtr		3rd Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	32	$	31	$	31	$	31	$	35	$	36	$	33	$	33	$	34
Pulpwood	$/Ton Stumpage	$	9	$	9	$	9	$	9	$	8	$	8	$	7	$	8	$	8
Northern Resources
Sawlog	$/Ton Delivered	$	71	$	76	$	76	$	74	$	77	$	78	$	81	$	74	$	77
Pulpwood	$/Ton Delivered	$	37	$	38	$	36	$	37	$	37	$	37	$	38	$	37	$	37
Lumber (1)	$/MBF	$	390	$	400	$	405	$	398	$	467	$	456	$	410	$	385	$	431
Plywood (1)	$/MSF	$	398	$	407	$	416	$	407	$	452	$	455	$	431	$	407	$	437
Fiberboard (1)	$/MSF	$	490	$	529	$	542	$	521	$	445	$	480	$	518	$	506	$	486
Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,681		1,691		1,639		5,011		1,749		1,685		1,548		1,629		6,611
Pulpwood	1,000 Tons		1,954		1,901		1,841		5,696		1,642		1,651		1,917		2,319		7,529
Total Harvest			3,635		3,592		3,480		10,707		3,391		3,336		3,465		3,948		14,140
Northern Resources
Sawlog	1,000 Tons		960		789		821		2,570		1,151		877		954		1,093		4,075
Pulpwood	1,000 Tons		819		527		635		1,981		766		517		734		725		2,742
Total Harvest			1,779		1,316		1,456		4,551		1,917		1,394		1,688		1,818		6,817
Lumber	MBF		95,265		95,701		82,217		273,183		99,367		97,059		93,925		86,880		377,231
Plywood	MSF		72,582		72,454		69,796		214,832		75,769		71,269		70,109		60,845		277,992
Fiberboard	MSF		64,872		65,938		64,039		194,849		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		3rd Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		8,645		21,255		30,735		60,635		15,050		11,765		19,040		14,240		60,095
Large Non-strategic		—		—		—		—		—		—		—		—		—
Conservation		4,210		480		2,650		7,340		2,580		2,185		4,600		15,020		24,385
HBU/Recreation		3,750		8,695		10,400		22,845		3,095		7,225		7,875		4,575		22,770
Development Properties		45		595		890		1,530		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		n/a
		16,650		31,025		44,675		92,350		21,800		21,820		33,485		34,470		111,575
Price per Acre
Small Non-strategic	$	1,445	$	1,295	$	1,400	$	1,370	$	1,465	$	1,270	$	1,765	$	1,730	$	1,585
Large Non-strategic		—		—		—		—		—		—		—		—		—
Conservation	$	1,740	$	6,660	$	2,150	$	2,210	$	2,085	$	1,500	$	3,865	$	990	$	1,695
HBU/Recreation	$	4,300	$	3,150	$	3,675	$	3,580	$	5,310	$	4,140	$	3,775	$	3,620	$	4,070
Development Properties	$	22,045	$	21,260	$	8,410	$	13,795	$	8,595	$	5,295	$	21,950	$	14,995	$	15,125
Conservation Easements		—		—		—		—	$	1,300		—	$	605		—	$	885
Revenue, ($ millions)
Small Non-strategic	$	13	$	28	$	43	$	84	$	22	$	15	$	33	$	26	$	96
Large Non-strategic		—		—		—		—		—		—		—		—		—
Conservation	$	7	$	3	$	6	$	16	$	5	$	3	$	18	$	15	$	41
HBU/Recreation	$	16	$	27	$	38	$	81	$	17	$	30	$	30	$	16	$	93
Development Properties	$	1	$	13	$	7	$	21	$	9	$	4	$	43	$	9	$	65
Conservation Easements		—		—		—		—	$	8		—	$	5		—	$	13
	$	37	$	71	$	94	$	202	$	61	$	52	$	129	$	66	$	308
Proceeds from Joint Ventures(1)	$	2		—		—	$	2		—		—		—		—		—
Basis of Real Estate Sold	$	9	$	14	$	22	$	45	$	10	$	13	$	43	$	19	$	85
($ millions)

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