Plum Creek Timber (PCL) 8-K Plum Creek Timber Company, Inc. Reports Results for First Quarter 2008

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Quarter Ended
	March 31, 2008			March 31, 2007
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	201		$	209
Real Estate		52			39
Manufacturing		105			115
Other		5			6
Total Revenues		363			369
Costs and Expenses:
Cost of Goods Sold:
Timber		139			134
Real Estate		16			16
Manufacturing		112			113
Other		—			1
Total Cost of Goods Sold		267			264
Selling, General and Administrative		30			30
Total Costs and Expenses		297			294
Other Operating Income (Expense), net		3			2
Operating Income		69			77
Interest Expense, net		36			36
Income before Income Taxes		33			41
Benefit for Income Taxes		(5	)		(4	)
Net Income	$	38		$	45
Per Share Amounts:
Net Income per Share
- Basic	$	0.22		$	0.26
- Diluted	$	0.22		$	0.25
Weighted Average Number of Shares Outstanding
- Basic		171.6			177.1
- Diluted		172.1			177.5

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	March 31, 2008			December 31, 2007
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	118		$	240
Accounts Receivable		39			33
Like-Kind Exchange Funds Held in Escrow		31			—
Inventories		86			82
Deferred Tax Asset		7			7
Real Estate Development Properties		6			5
Assets Held for Sale		66			64
Other Current Assets		24			25
		377			456
Timber and Timberlands, net		3,924			3,949
Property, Plant and Equipment, net		196			202
Investment in Grantor Trusts (At Fair Value)		24			27
Other Assets		35			30
Total Assets	$	4,556		$	4,664
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	150		$	147
Accounts Payable		37			48
Interest Payable		39			29
Wages Payable		11			25
Taxes Payable		15			23
Deferred Revenue		7			13
Other Current Liabilities		17			18
		276			303
Long-Term Debt		2,020			1,820
Line of Credit		369			556
Deferred Tax Liability		18			20
Other Liabilities		57			64
Total Liabilities		2,740			2,763
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) - 171.1 at March 31, 2008, and 172.3 at December 31, 2007		2			2
Additional Paid-In Capital		2,206			2,204
Retained Earnings		168			202
Treasury Stock, at cost, Common Shares - 15.9 at March 31, 2008, and 14.6 at December 31, 2007		(560	)		(509	)
Accumulated Other Comprehensive Income		—			2
Total Stockholders’ Equity		1,816			1,901
Total Liabilities and Stockholders’ Equity	$	4,556		$	4,664

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended
	March 31, 2008			March 31, 2007
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	38		$	45
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization		33			33
Basis of Real Estate Sold		10			9
Expenditures for Real Estate Development		(3	)		(2	)
Deferred Income Taxes		(2	)		(3	)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		(31	)		(10	)
Other Working Capital Changes		(39	)		(31	)
Other		(7	)		(3	)
Net Cash Provided By (Used In) Operating Activities		(1	)		38
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(13	)		(11	)
Timberlands Acquired		(1	)	��	—
Other		—			2
Net Cash Used In Investing Activities		(14	)		(9	)
Cash Flows From Financing Activities:
Dividends		(72	)		(75	)
Borrowings on Line of Credit		477			649
Repayments on Line of Credit		(664	)		(577	)
Proceeds from Issuance of Long-Term Debt		250			—
Principal Payments and Retirement of Long-Term Debt		(47	)		(72	)
Proceeds from Stock Option Exercises		—			5
Acquisition of Treasury Stock		(51	)		(22	)
Net Cash Used In Financing Activities		(107	)		(92	)
Decrease In Cash and Cash Equivalents		(122	)		(63	)
Cash and Cash Equivalents:
Beginning of Period		240			273
End of Period	$	118		$	210

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Three Months 2008			Three Months 2007
	(In Millions)
Revenues:
Northern Resources	$	94		$	99
Southern Resources		122			127
Real Estate		52			39
Manufacturing		105			115
Other		5			6
Eliminations		(15	)		(17	)
Total Revenues	$	363		$	369
Operating Income (Loss)
Northern Resources	$	14		$	19
Southern Resources		37			46
Real Estate		33			21
Manufacturing		(9	)		(1	)
Other		5			5
Other Costs and Eliminations		(11	)		(13	)
Total Operating Income	$	69		$	77

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

		2008		2007
		1st Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	29	$	32	$	31	$	31	$	30	$	31
Pulpwood	$/Ton Stumpage	$	10	$	9	$	9	$	9	$	9	$	9
Northern Resources
Sawlog	$/Ton Delivered	$	67	$	71	$	76	$	76	$	71	$	73
Pulpwood	$/Ton Delivered	$	39	$	37	$	38	$	36	$	38	$	37
Lumber (1)	$/MBF	$	366	$	390	$	400	$	405	$	410	$	400
Plywood (1)	$/MSF	$	398	$	398	$	407	$	416	$	399	$	405
Fiberboard (1)	$/MSF	$	591	$	490	$	529	$	542	$	538	$	525
Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,459		1,681		1,691		1,639		1,401		6,412
Pulpwood	1,000 Tons		1,976		1,954		1,901		1,841		2,020		7,716
Total Harvest			3,435		3,635		3,592		3,480		3,421		14,128
Northern Resources
Sawlog	1,000 Tons		978		960		789		821		1,032		3,602
Pulpwood	1,000 Tons		738		819		527		635		645		2,626
Total Harvest			1,716		1,779		1,316		1,456		1,677		6,228
Lumber	MBF		69,596		95,265		95,701		82,217		77,248		350,431
Plywood	MSF		68,746		72,582		72,454		69,796		62,614		277,446
Fiberboard	MSF		58,784		64,872		65,938		64,039		59,179		254,028

(1) Represents prices at mill level.

Plum Creek Timber Company, Inc.

Land Sale Statistics

(Unaudited)

	2008		2007
	1st Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		17,145		8,645		21,255		30,735		16,895		77,530
Large Non-strategic		—		—		—		—		99,325		99,325
Conservation		1,015		4,210		480		2,650		24,505		31,845
HBU/Recreation		10,635		3,750		8,695		10,400		14,220		37,065
Development Properties		65		45		595		890		3,760		5,290
Conservation Easements		n/a		n/a		n/a		n/a		n/a		n/a
		28,860		16,650		31,025		44,675		158,705		251,055
Price per Acre
Small Non-strategic	$	1,180	$	1,445	$	1,295	$	1,400	$	1,510	$	1,400
Large Non-strategic		—		—		—		—	$	705	$	705
Conservation	$	395	$	1,740	$	6,660	$	2,150	$	1,080	$	1,340
HBU/Recreation	$	2,875	$	4,300	$	3,150	$	3,675	$	3,315	$	3,475
Development Properties	$	5,825	$	22,045	$	21,260	$	8,410	$	7,640	$	9,440
Conservation Easements		—		—		—		—		—		—
Revenue, ($ millions)
Small Non-strategic	$	20	$	13	$	28	$	43	$	26	$	110
Large Non-strategic		—		—		—		—	$	70	$	70
Conservation		—	$	7	$	3	$	6	$	26	$	42
HBU/Recreation	$	31	$	16	$	27	$	38	$	47	$	128
Development Properties		—	$	1	$	13	$	7	$	29	$	50
Conservation Easements		—		—		—		—		—		—
	$	52	$	37	$	71	$	94	$	198	$	400
Proceeds from Joint Ventures(1)		—	$	2		—		—		—	$	2
Basis of Real Estate Sold (2)	$	10	$	9	$	14	$	22	$	63	$	108
($ 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