Plum Creek Timber (PCL) 8-K Plum Creek Reports Results for Fourth Quarter and Full Year 2008

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Twelve Months Ended
	December 31, 2008			December 31, 2007
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	752		$	782
Real Estate		432			402
Manufacturing		405			471
Other		25			20
Total Revenues		1,614			1,675
Costs and Expenses:
Cost of Goods Sold:
Timber		542			523
Real Estate		178			144
Manufacturing		435			454
Other		2			3
Total Cost of Goods Sold		1,157			1,124
Selling, General and Administrative		128			127
Total Costs and Expenses		1,285			1,251
Other Operating Income (Expense), net		(1	)		—
Operating Income		328			424
Equity Earnings from Timberland Venture		15			—
Interest Expense, net:
Interest Expense (Debt Obligations to Third Parties)		134			147
Interest Expense (Note Payable to Timberland Venture)		14			—
Total Interest Expense, net		148			147
Gain on Extinguishment of Debt		11			—
Income before Income Taxes		206			277
Benefit for Income Taxes		(27	)		(3	)
Income From Continuing Operations		233			280
Gain on Sale of Properties, net of tax		—			2
Net Income	$	233		$	282
Per Share Amounts:
Income From Continuing Operations - Basic	$	1.37		$	1.60
Income From Continuing Operations - Diluted	$	1.37		$	1.60
Net Income per Share - Basic	$	1.37		$	1.61
Net Income per Share - Diluted	$	1.37		$	1.61
Weighted Average Number of Shares Outstanding
- Basic		170.3			174.5
- Diluted		170.7			175.0

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Quarter Ended
	December 31, 2008			December 31, 2007
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	165		$	193
Real Estate		215			198
Manufacturing		75			108
Other		6			5
Total Revenues		461			504
Costs and Expenses:
Cost of Goods Sold:
Timber		122			132
Real Estate		109			75
Manufacturing		90			105
Other		—			1
Total Cost of Goods Sold		321			313
Selling, General and Administrative		34			36
Total Costs and Expenses		355			349
Other Operating Income (Expense), net		(3	)		—
Operating Income		103			155
Equity Earnings from Timberland Venture		15			—
Interest Expense, net:
Interest Expense (Debt Obligations to Third Parties)		29			38
Interest Expense (Note Payable to Timberland Venture)		14			—
Total Interest Expense, net		43			38
Gain on Extinguishment of Debt		11			—
Income before Income Taxes		86			117
Benefit for Income Taxes		(9	)		(1	)
Net Income	$	95		$	118
Per Share Amounts:
Net Income per Share - Basic	$	0.57		$	0.68
Net Income per Share - Diluted	$	0.57		$	0.68
Weighted Average Number of Shares Outstanding
- Basic		167.2			172.3
- Diluted		167.4			172.8

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	December 31, 2008			December 31, 2007
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	369		$	240
Accounts Receivable		22			33
Like-Kind Exchange Funds Held in Escrow		48			—
Taxes Receivable		23			4
Inventories		74			82
Deferred Tax Asset		11			7
Real Estate Development Properties		4			5
Assets Held for Sale		137			64
Other Current Assets		11			21
		699			456
Timber and Timberlands, net		3,638			3,949
Property, Plant and Equipment, net		177			202
Equity Investment in Timberland Venture		199			—
Investment in Grantor Trusts (at Fair Value)		25			27
Other Assets		42			30
Total Assets	$	4,780		$	4,664
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	158		$	147
Accounts Payable		35			48
Interest Payable		30			29
Wages Payable		28			25
Taxes Payable		18			23
Deferred Revenue		17			13
Other Current Liabilities		21			18
		307			303
Long-Term Debt		1,793			1,820
Line of Credit		231			556
Note Payable to Timberland Venture		783			—
Deferred Tax Liability		4			20
Other Liabilities		90			64
Total Liabilities		3,208			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) - 166.0 at December 31, 2008, and 172.3 at December 31, 2007		2			2
Additional Paid-In Capital		2,225			2,204
Retained Earnings		149			202
Treasury Stock, at cost, Common Shares - 21.5 at December 31, 2008, and 14.6 at December 31, 2007		(773	)		(509	)
Accumulated Other Comprehensive Income (Loss)		(31	)		2
Total Stockholders’ Equity		1,572			1,901
Total Liabilities and Stockholders’ Equity	$	4,780		$	4,664

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Twelve Months Ended
	December 31, 2008			December 31, 2007
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	233		$	282
Adjustments to Reconcile Net Income to
Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization		135			134
(includes $10 Lumber Impairment Loss in 2008 and $4 Loss Related to Forest Fires in 2007)
Basis of Real Estate Sold		149			108
Equity Earnings from Timberland Venture		(15	)		—
Expenditures for Real Estate Development		(7	)		(19	)
Deferred Income Taxes		(10	)		(9	)
Gain on Sales of Properties and Other Assets		(3	)		(2	)
Gain on Extinguishment of Debt		(11	)		—
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		18			—
Pension Plan Contributions		(30	)		—
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		(48	)		—
Other Working Capital Changes		(8	)		8
Other		17			15
Net Cash Provided By Operating Activities		420			517
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(70	)		(93	)
Timberlands Acquired		(119	)		(174	)
Proceeds from Sales of Properties and Other Assets		3			3
Investment in Timberland Venture		(9	)		—
Purchases of Marketable Securities		(7	)		—
Other		(3	)		2
Net Cash Used In Investing Activities		(205	)		(262	)
Cash Flows From Financing Activities:
Dividends		(286	)		(294	)
Borrowings on Line of Credit		1,506			2,795
Repayments on Line of Credit		(1,831	)		(2,820	)
Proceeds from Issuance of Long-Term Debt		250			350
Principal Payments and Retirement of Long-Term Debt		(258	)		(125	)
Note Payable to Timberland Venture		783			—
Proceeds from Stock Option Exercises		14			8
Acquisition of Treasury Stock		(264	)		(202	)
Net Cash Used In Financing Activities		(86	)		(288	)
Increase (Decrease) In Cash and Cash Equivalents		129			(33	)
Cash and Cash Equivalents:
Beginning of Period		240			273
End of Period	$	369		$	240
Non-Cash Investing Activity
Contribution of Timber and Timberlands to Timberland Venture	$	174		$	—

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended
	December 31, 2008			December 31, 2007
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	95		$	118
Adjustments to Reconcile Net Income to
Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization		26			32
Basis of Real Estate Sold		100			63
Equity Earnings from Timberland Venture		(15	)		—
Expenditures for Real Estate Development		(1	)		(6	)
Deferred Income Taxes		1			(2	)
Gain on Extinguishment of Debt		(11	)		—
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		1			—
Pension Plan Contributions		(23	)		—
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		21			13
Other Working Capital Changes		(7	)		(10	)
Other		8			5
Net Cash Provided By Operating Activities		195			213
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(23	)		(34	)
Timberlands Acquired		(54	)		(78	)
Investment in Timberland Venture		(9	)		—
Purchases of Marketable Securities		(6	)		—
Net Cash Used In Investing Activities		(92	)		(112	)
Cash Flows From Financing Activities:
Dividends		(70	)		(72	)
Borrowings on Line of Credit		231			616
Repayments on Line of Credit		(432	)		(574	)
Principal Payments and Retirement of Long-Term Debt		(208	)		—
Note Payable to Timberland Venture		783			—
Proceeds from Stock Option Exercises		—			1
Acquisition of Treasury Stock		(213	)		—
Net Cash Provided By (Used In) Financing Activities		91			(29	)
Increase (Decrease) In Cash and Cash Equivalents		194			72
Cash and Cash Equivalents:
Beginning of Period		175			168
End of Period	$	369		$	240
Non-Cash Investing Activity
Contribution of Timber and Timberlands to Timberland Venture	$	174		$	—

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Twelve Months 2008			Twelve Months 2007
	(In Millions)
Revenues:
Northern Resources	$	347		$	361
Southern Resources		461			492
Real Estate		432			402
Manufacturing		405			471
Other		25			20
Eliminations		(56	)		(71	)
Total Revenues	$	1,614		$	1,675
Operating Income (Loss)
Northern Resources	$	41		$	58
Southern Resources		128			161
Real Estate		245			250
Manufacturing		(44	)		2
Other		23			17
Other Costs and Eliminations		(64	)		(64	)
Other Operating Income (Expense), net		(1	)		—
Total Operating Income	$	328		$	424

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Fourth Quarter 2008			Fourth Quarter 2007
	(In Millions)
Revenues:
Northern Resources	$	84		$	97
Southern Resources		95			118
Real Estate		215			198
Manufacturing		75			108
Other		6			5
Eliminations		(14	)		(22	)
Total Revenues	$	461		$	504
Operating Income (Loss)
Northern Resources	$	8		$	17
Southern Resources		25			35
Real Estate		104			121
Manufacturing		(20	)		(1	)
Other		6			4
Other Costs and Eliminations		(17	)		(21	)
Other Operating Income (Expense), net		(3	)		—
Total Operating Income	$	103		$	155

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

		2008										2007
		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	$	29	$	26	$	25	$	26	$	26	$	32	$	31	$	31	$	30	$	31
Pulpwood	$/Ton Stumpage	$	10	$	10	$	10	$	12	$	10	$	9	$	9	$	9	$	9	$	9
Northern Resources
Sawlog	$/Ton Delivered	$	67	$	68	$	74	$	68	$	69	$	71	$	76	$	76	$	71	$	73
Pulpwood	$/Ton Delivered	$	39	$	43	$	45	$	44	$	43	$	37	$	38	$	36	$	38	$	37
Lumber (1)	$/MBF	$	366	$	367	$	384	$	367	$	371	$	390	$	400	$	405	$	410	$	400
Plywood (1)	$/MSF	$	398	$	404	$	396	$	382	$	397	$	398	$	407	$	416	$	399	$	405
Fiberboard (1)	$/MSF	$	591	$	600	$	610	$	625	$	604	$	490	$	529	$	542	$	538	$	525
Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,459		1,666		1,425		1,020		5,570		1,681		1,691		1,639		1,401		6,412
Pulpwood	1,000 Tons		1,976		2,221		2,089		1,741		8,027		1,954		1,901		1,841		2,020		7,716
Total Harvest			3,435		3,887		3,514		2,761		13,597		3,635		3,592		3,480		3,421		14,128
Northern Resources
Sawlog	1,000 Tons		978		739		828		821		3,366		960		789		821		1,032		3,602
Pulpwood	1,000 Tons		738		504		725		649		2,616		819		527		635		645		2,626
Total Harvest			1,716		1,243		1,553		1,470		5,982		1,779		1,316		1,456		1,677		6,228
Lumber	MBF		69,596		83,477		74,100		62,660		289,833		95,265		95,701		82,217		77,248		350,431
Plywood	MSF		68,746		68,616		62,112		37,509		236,983		72,582		72,454		69,796		62,614		277,446
Fiberboard	MSF		58,784		63,205		44,371		31,071		197,431		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		2nd Qtr		3rd Qtr		4th Qtr (1)		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		17,145		13,215		14,800		47,125		92,285		8,645		21,255		30,735		16,895		77,530
Large Non-strategic		—		—		—		—		—		—		—		—		99,325		99,325
Conservation		1,015		595		39,880		134,250		175,740		4,210		480		2,650		24,505		31,845
HBU/Recreation		10,635		11,785		15,640		7,550		45,610		3,750		8,695		10,400		14,220		37,065
Development Properties		65		700		10		45		820		45		595		890		3,760		5,290
Conservation Easements		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
		28,860		26,295		70,330		188,970		314,455		16,650		31,025		44,675		158,705		251,055
Price per Acre
Small Non-strategic	$	1,180	$	1,285	$	1,145	$	745	$	965	$	1,445	$	1,295	$	1,400	$	1,510	$	1,400
Large Non-strategic		—		—		—		—		—		—		—		—	$	705	$	705
Conservation	$	395	$	1,555	$	1,035	$	1,170	$	1,140	$	1,740	$	6,660	$	2,150	$	1,080	$	1,340
HBU/Recreation	$	2,875	$	2,740	$	3,220	$	2,965	$	2,975	$	4,300	$	3,150	$	3,675	$	3,315	$	3,475
Development Properties	$	5,825	$	9,630	$	13,130	$	4,095	$	8,770	$	22,045	$	21,260	$	8,410	$	7,640	$	9,440
Conservation Easements		—		—		—		—		—		—		—		—		—		—
Revenue, ($ millions)
Small Non-strategic	$	20	$	17	$	17	$	35	$	89	$	13	$	28	$	43	$	26	$	110
Large Non-strategic		—		—		—		—		—		—		—		—	$	70	$	70
Conservation		—	$	1	$	41	$	157	$	200	$	7	$	3	$	6	$	26	$	42
HBU/Recreation	$	31	$	32	$	50	$	22	$	136	$	16	$	27	$	38	$	47	$	128
Development Properties		—	$	7		—		—	$	7	$	1	$	13	$	7	$	29	$	50
Conservation Easements		—		—		—		—		—		—		—		—		—		—
	$	52	$	57	$	108	$	215	$	432	$	37	$	71	$	94	$	198	$	400
Proceeds from Joint Ventures(2)		—		—		—		—		—	$	2		—		—		—	$	2
Basis of Real Estate Sold (3)	$	10	$	13	$	26	$	100	$	149	$	9	$	14	$	22	$	63	$	108

(1) During the 4th quarter of 2008 we sold 130,000 acres in Montana to a conservation buyer for $150 million. The sale is presented as a Conservation sale. The transaction included 59,000 acres of Conservation property, 51,000 acres of Small Non-strategic property, 16,000 acres of HBU/ Recreation property, and 4,000 acres of Development property.

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

(3) Includes $75 million in the fourth quarter of 2008 for a 130,000 acre conservation sale in Montana and $26 million in the fourth quarter of 2007 for a large non-strategic sale in Wisconsin.

PLUM CREEK TIMBER COMPANY, INC.

DEBT MATURITIES SCHEDULE

December 31, 2008

(UNAUDITED)

	Borrowings (1)
	Principal	Weighted Avg. Interest Rate
Quarterly Maturities through 2010:
1st Qtr 2009	49	7.670%
3rd Qtr 2009	109	8.730%
1st Qtr 2010	52	5.480%
4th Qtr 2010	4	8.050%
Annual Maturities through 2014:
2011	416	7.739%	(2)
2012	604	—	(3)
2013	250	6.663%	(4)
2014	4	8.050%

(1) Does not include repayments on the company’s $750 million revolving line of credit due in 2011.

(2) Principal amount composed of senior notes with principal amounts of $74 million, $4 million, $290 million and $48 million and interest rates of 7.970%, 8.050%, 7.660% and 7.830%, respectively.

(3) Includes $600 million of maturities for the company’s two term credit agreements and senior notes with principal of $4 million and an interest rate of 8.050%. The interest rate on the $350 million term credit agreement is currently based on LIBOR plus 0.45%. The interest rate on the $250 million term credit agreement is currently based on LIBOR plus 1.00%.

(4) Principal amount composed of senior notes with principal amounts of $4 million, $72 million and $174 million and interest rates of 8.050%, 7.760% and 6.180%, respectively.

Plum Creek Timber Company, Inc

Acreage Ownership by State

(Unaudited)

	December 31, 2008
Alabama	100,000
Arkansas	773,000
Florida	600,000
Georgia	784,000
Louisiana	473,000
Maine	929,000
Michigan	602,000
Mississippi	686,000
Montana	1,089,000
New Hampshire	33,000
North Carolina	9,000
Oklahoma	6,000
Oregon	430,000
South Carolina	189,000
Texas	47,000
Vermont	86,000
Washington	121,000
West Virginia	112,000
Wisconsin	320,000
Total	7,389,000