Plum Creek Timber (PCL) 8-K Plum Creek Reports Results for Fourth Quarter and Full Year 2007

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

		Year Ended
		December 31, 2007			December 31, 2006
		(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	782		$	807
Real Estate		402			308
Manufacturing		471			493
Other		20			19
Total Revenues		1,675			1,627
Costs and Expenses:
Cost of Goods Sold:
Timber		523			487
Real Estate		144			122
Manufacturing		454			455
Other		3			3
Total Cost of Goods Sold		1,124			1,067
Selling, General and Administrative		127			117
Total Costs and Expenses		1,251			1,184
Gain from Canadian Lumber Settlement		-			14
Other Operating Income (Expense), net		-			4
Operating Income		424			461
Interest Expense, net		147			133
Income before Income Taxes		277			328
Provision (Benefit) for Income Taxes		(3	)		13
Income From Continuing Operations		280			315
Gain on Sale of Properties, net of tax		2			-
Income Before Cumulative Effect of Accounting Change		282			315
Cumulative Effect of Accounting Change, net of tax		-			2
Net Income	$	282		$	317
Per Share Amounts:
Income From Continuing Operations per Share
- Basic	$	1.60		$	1.75
- Diluted	$	1.60		$	1.74
Net Income per Share
- Basic	$	1.61		$	1.76
- Diluted	$	1.61		$	1.75
Weighted Average Number of Shares Outstanding
- Basic		174.5			180.5
- Diluted		175.0			180.9

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

		Quarter Ended
		December 31, 2007			December 31, 2006
		(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	193		$	204
Real Estate		198			66
Manufacturing		108			105
Other		5			4
Total Revenues		504			379
Costs and Expenses:
Cost of Goods Sold:
Timber		132			126
Real Estate		75			29
Manufacturing		105			102
Other		1			1
Total Cost of Goods Sold		313			258
Selling, General and Administrative		36			36
Total Costs and Expenses		349			294
Gain from Canadian Lumber Settlement		-			14
Other Operating Income (Expense), net		-			2
Operating Income		155			101
Interest Expense, net		38			35
Income before Income Taxes		117			66
Benefit for Income Taxes		(1	)		(3	)
Net Income	$	118		$	69
Per Share Amounts:
Net Income per Share
- Basic	$	0.68		$	0.39
- Diluted	$	0.68		$	0.39
Weighted Average Number of Shares Outstanding
- Basic		172.3			177.0
- Diluted		172.8			177.4

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

		December 31, 2007			December 31, 2006
		(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	240		$	273
Restricted Advance from Customer		-			4
Accounts Receivable		33			40
Inventories		82			83
Deferred Tax Asset		7			7
Real Estate Development Properties		5			3
Assets Held for Sale		64			82
Other Current Assets		25			21
		456			513
Timber and Timberlands, Net		3,949			3,876
Property, Plant and Equipment, Net		202			216
Investment in Grantor Trusts		27			28
Other Assets		30			28
Total Assets	$	4,664		$	4,661
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	147		$	125
Accounts Payable		48			42
Interest Payable		29			30
Wages Payable		25			27
Taxes Payable		23			24
Deferred Revenue		13			17
Other Current Liabilities		18			16
		303			281
Long-Term Debt		1,820			1,617
Line of Credit		556			581
Deferred Tax Liability		20			25
Other Liabilities		64			68
Total Liabilities		2,763			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 December 31, 2007, and 177.1 at December 31, 2006		2			2
Additional Paid-In Capital		2,204			2,190
Retained Earnings		202			214
Treasury Stock, at cost, Common Shares - 14.6 at December 31, 2007, and 9.5 at December 31, 2006		(509	)		(307	)
Accumulated Other Comprehensive Income (Loss)		2			(10	)
Total Stockholders’ Equity		1,901			2,089
Total Liabilities and Stockholders’ Equity	$	4,664		$	4,661

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

		Year Ended
		December 31, 2007			December 31, 2006
		(In Millions)
Cash Flows From Operating Activities:
Net Income	$	282		$	317
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)		134			128
Basis of Real Estate Sold		108			85
Expenditures for Real Estate Development		(19	)		(6	)
Deferred Income Taxes		(9	)		1
Gain on Sales of Properties and Other Assets		(2	)		(1	)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		-			30
Other Working Capital Changes		8			(1	)
Other		15			3
Net Cash Provided By Operating Activities		517			556
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(93	)		(86	)
Timberlands Acquired		(174	)		(111	)
Proceeds from Sales of Properties and Other Assets		3			2
Other		2			(4	)
Net Cash Used In Investing Activities		(262	)		(199	)
Cash Flows From Financing Activities:
Dividends		(294	)		(290	)
Borrowings on Line of Credit		2,795			3,483
Repayments on Line of Credit		(2,820	)		(3,397	)
Repayment of Short-Term Debt		-			(50	)
Proceeds from Issuance of Long-Term Debt		350			216
Principal Payments and Retirement of Long-Term Debt		(125	)		(159	)
Proceeds from Stock Option Exercises		8			7
Acquisition of Treasury Stock		(202	)		(263	)
Net Cash Used In Financing Activities		(288	)		(453	)
Decrease In Cash and Cash Equivalents		(33	)		(96	)
Cash and Cash Equivalents:
Beginning of Year		273			369
End of Year	$	240		$	273

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

		Quarter Ended
		December 31, 2007			December 31, 2006
		(In Millions)
Cash Flows From Operating Activities:
Net Income	$	118		$	69
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization		32			34
Basis of Real Estate Sold		63			19
Expenditures for Real Estate Development		(6	)		(1	)
Deferred Income Taxes		(2	)		(7	)
Gain on Sale of Properties and Other Assets		-			(1	)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		13			40
Other Working Capital Changes		(10	)		(19	)
Other		5			2
Net Cash Provided By Operating Activities		213			136
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(34	)		(26	)
Timberlands Acquired		(78	)		(89	)
Proceeds from Sales of Properties and Other Assets		-			1
Net Cash Used In Investing Activities		(112	)		(114	)
Cash Flows From Financing Activities:
Dividends		(72	)		(71	)
Borrowings on Line of Credit		616			1,316
Repayments on Line of Credit		(574	)		(1,253	)
Principal Payments and Retirement of Long-Term Debt		-			(130	)
Proceeds from Stock Option Exercises		1			1
Acquisition of Treasury Stock		-			(1	)
Net Cash Used In Financing Activities		(29	)		(138	)
Increase (Decrease) In Cash and Cash Equivalents		72			(116	)
Cash and Cash Equivalents:
Beginning of Period		168			389
End of Period	$	240		$	273

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

		Twelve Months 2007			Twelve Months 2006
		(In Millions)
Revenues:
Northern Resources	$	361		$	413
Southern Resources		492			479
Real Estate		402			308
Manufacturing		471			493
Other		20			19
Eliminations		(71	)		(85	)
Total Revenues	$	1,675		$	1,627
Operating Income (Loss)
Northern Resources	$	58		$	105
Southern Resources		161			178
Real Estate		250			178
Manufacturing		2			22
Other		17			16
Other Costs and Eliminations.		(64	)		(52	)
Gain from Canadian Lumber Settlement		-			14
Total Operating Income.	$	424		$	461

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

		Fourth Quarter 2007			Fourth Quarter 2006
		(In Millions)
Revenues:
Northern Resources	$	97		$	105
Southern Resources .		118			121
Real Estate		198			66
Manufacturing		108			105
Other		5			4
Eliminations		(22	)		(22	)
Total Revenues	$	504		$	379
Operating Income (Loss)
Northern Resources	$	17		$	24
Southern Resources		35			42
Real Estate		121			35
Manufacturing		(1	)		(2	)
Other		4			3
Other Costs and Eliminations.		(21	)		(15	)
Gain from Canadian Lumber Settlement		-			14
Total Operating Income.	$	155		$	101

Plum Creek Timber Company, Inc.

Selected Operating Statistics

(Unaudited)

		2007										2006
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	32	$	31	$	31	$	30	$	31	$	35	$	36	$	33	$	33	$	34
Pulpwood	$/Ton Stumpage	$	9	$	9	$	9	$	9	$	9	$	8	$	8	$	7	$	8	$	8
Northern Resources
Sawlog	$/Ton Delivered	$	71	$	76	$	76	$	71	$	73	$	77	$	78	$	81	$	74	$	77
Pulpwood	$/Ton Delivered	$	37	$	38	$	36	$	38	$	37	$	37	$	37	$	38	$	37	$	37
Lumber (1)	$/MBF	$	390	$	400	$	405	$	410	$	400	$	467	$	456	$	410	$	385	$	431
Plywood (1)	$/MSF	$	398	$	407	$	416	$	399	$	405	$	452	$	455	$	431	$	407	$	437
Fiberboard (1)	$/MSF	$	490	$	529	$	542	$	538	$	525	$	445	$	480	$	518	$	506	$	486
Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,681		1,691		1,639		1,401		6,412		1,749		1,685		1,548		1,629		6,611
Pulpwood	1,000 Tons		1,954		1,901		1,841		2,020		7,716		1,642		1,651		1,917		2,319		7,529
Total Harvest			3,635		3,592		3,480		3,421		14,128		3,391		3,336		3,465		3,948		14,140
Northern Resources
Sawlog	1,000 Tons		960		789		821		1,032		3,602		1,151		877		954		1,093		4,075
Pulpwood	1,000 Tons		819		527		635		645		2,626		766		517		734		725		2,742
Total Harvest			1,779		1,316		1,456		1,677		6,228		1,917		1,394		1,688		1,818		6,817
Lumber	MBF		95,265		95,701		82,217		77,248		350,431		99,367		97,059		93,925		86,880		377,231
Plywood	MSF		72,582		72,454		69,796		62,614		277,446		75,769		71,269		70,109		60,845		277,992
Fiberboard	MSF		64,872		65,938		64,039		59,179		254,028		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		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		8,645		21,255		30,735		16,895		77,530		15,050		11,765		19,040		14,240		60,095
Large Non-strategic		-		-		-		99,325		99,325		-		-		-		-		-
Conservation		4,210		480		2,650		24,505		31,845		2,580		2,185		4,600		15,020		24,385
HBU/Recreation		3,750		8,695		10,400		14,220		37,065		3,095		7,225		7,875		4,575		22,770
Development Properties		45		595		890		3,760		5,290		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		n/a
		16,650		31,025		44,675		158,705		251,055		21,800		21,820		33,485		34,470		111,575
Price per Acre
Small Non-strategic	$	1,445	$	1,295	$	1,400	$	1,510	$	1,400	$	1,465	$	1,270	$	1,765	$	1,730	$	1,585
Large Non-strategic		-		-		-	$	705	$	705		-		-		-		-		-
Conservation	$	1,740	$	6,660	$	2,150	$	1,080	$	1,340	$	2,085	$	1,500	$	3,865	$	990	$	1,695
HBU/Recreation	$	4,300	$	3,150	$	3,675	$	3,315	$	3,475	$	5,310	$	4,140	$	3,775	$	3,620	$	4,070
Development Properties	$	22,045	$	21,260	$	8,410	$	7,640	$	9,440	$	8,595	$	5,295	$	21,950	$	14,995	$	15,125
Conservation Easements		-		-		-		-		-	$	1,300		-	$	605		-	$	885
Revenue, ($ millions)
Small Non-strategic	$	13	$	28	$	43	$	26	$	110	$	22	$	15	$	33	$	26	$	96
Large Non-strategic		-		-		-	$	70	$	70		-		-		-		-		-
Conservation	$	7	$	3	$	6	$	26	$	42	$	5	$	3	$	18	$	15	$	41
HBU/Recreation	$	16	$	27	$	38	$	47	$	128	$	17	$	30	$	30	$	16	$	93
Development Properties	$	1	$	13	$	7	$	29	$	50	$	9	$	4	$	43	$	9	$	65
Conservation Easements		-		-		-		-		-	$	8		-	$	5		-	$	13
	$	37	$	71	$	94	$	198	$	400	$	61	$	52	$	129	$	66	$	308
Proceeds from Joint Ventures (1)	$	2		-		-		-	$	2		-		-		-		-		-
Basis of Real Estate Sold (2)	$	9	$	14	$	22	$	63	$	108	$	10	$	13	$	43	$	19	$	85
($ millions)

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

(2) Includes $26 Million in the Fourth Quarter 2007 for a Large, Non-strategic Sale

Plum Creek Timber Company, Inc.

Acreage Ownership by State

(Unaudited)

	December 31, 2007
Alabama	101,000
Arkansas	899,000
Florida	601,000
Georgia	866,000
Louisiana	492,000
Maine	929,000
Michigan	646,000
Mississippi	807,000
Montana	1,226,000
New Hampshire	33,000
North Carolina	62,000
Oklahoma	120,000
Oregon	405,000
South Carolina	199,000
Texas	47,000
Washington	124,000
West Virginia	113,000
Wisconsin	364,000
Total	8,034,000