Plum Creek Timber (PCL) 8-K Plum Creek Reports Results for Fourth Quarter and Full Year 2009

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Twelve Months Ended
	December 31, 2009			December 31, 2008
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	545		$	752
Real Estate		486			432
Manufacturing		245			405
Other		18			25
Total Revenues		1,294			1,614
Costs and Expenses:
Cost of Goods Sold:
Timber		431			542
Real Estate		200			178
Manufacturing		257			435
Other		1			2
Total Cost of Goods Sold		889			1,157
Selling, General and Administrative		106			128
Total Costs and Expenses		995			1,285
Other Operating Income (Expense), net		—			(1	)
Operating Income		299			328
Equity Earnings from Timberland Venture		55			15
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)		89			134
Interest Expense (Note Payable to Timberland Venture)		58			14
Total Interest Expense, net		147			148
Gain (Loss) on Extinguishment of Debt		(2	)		11
Income before Income Taxes		205			206
Benefit for Income Taxes		(31	)		(27	)
Net Income	$	236		$	233
Per Share Amounts:
Net Income per Share - Basic	$	1.45		$	1.37
Net Income per Share - Diluted	$	1.44		$	1.37
Weighted Average Number of Shares Outstanding
- Basic		163.3			170.3
- Diluted		163.4			170.7

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Quarter Ended
	December 31, 2009			December 31, 2008
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	131		$	165
Real Estate		67			215
Manufacturing		56			75
Other		4			6
Total Revenues		258			461
Costs and Expenses:
Cost of Goods Sold:
Timber		105			122
Real Estate		21			109
Manufacturing		52			90
Other		—			—
Total Cost of Goods Sold		178			321
Selling, General and Administrative		31			34
Total Costs and Expenses		209			355
Other Operating Income (Expense), net		—			(3	)
Operating Income		49			103
Equity Earnings from Timberland Venture		12			15
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)		20			29
Interest Expense (Note Payable to Timberland Venture)		15			14
Total Interest Expense, net		35			43
Gain (Loss) on Extinguishment of Debt		(3	)		11
Income before Income Taxes		23			86
Benefit for Income Taxes		(5	)		(9	)
Net Income	$	28		$	95
Per Share Amounts:
Net Income per Share - Basic	$	0.17		$	0.57
Net Income per Share - Diluted	$	0.17		$	0.57
Weighted Average Number of Shares Outstanding
- Basic		162.8			167.2
- Diluted		163.0			167.4

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	December 31, 2009			December 31, 2008
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	299		$	369
Accounts Receivable		24			22
Like-Kind Exchange Funds Held in Escrow		—			48
Taxes Receivable		15			23
Inventories		46			74
Deferred Tax Asset		6			11
Real Estate Development Properties		1			4
Assets Held for Sale		115			137
Other Current Assets		13			11
		519			699
Timber and Timberlands, net		3,487			3,638
Property, Plant and Equipment, net		156			177
Equity Investment in Timberland Venture		201			199
Deferred Tax Asset		14			—
Investment in Grantor Trusts (at Fair Value)		33			25
Other Assets		38			42
Total Assets	$	4,448		$	4,780
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	55		$	158
Accounts Payable		32			35
Interest Payable		25			30
Wages Payable		20			28
Taxes Payable		14			18
Deferred Revenue		16			17
Other Current Liabilities		21			21
		183			307
Long-Term Debt		1,625			1,793
Line of Credit		320			231
Note Payable to Timberland Venture		783			783
Deferred Tax Liability		—			4
Other Liabilities		71			90
Total Liabilities		2,982			3,208
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) - 162.8 at December 31, 2009, and 166.0 at December 31, 2008		2			2
Additional Paid-In Capital		2,233			2,225
Retained Earnings		110			149
Treasury Stock, at cost, Common Shares - 24.8 at December 31, 2009, and 21.5 at December 31, 2008		(860	)		(773	)
Accumulated Other Comprehensive Income (Loss)		(19	)		(31	)
Total Stockholders’ Equity		1,466			1,572
Total Liabilities and Stockholders’ Equity	$	4,448		$	4,780

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Twelve Months Ended
	December 31, 2009			December 31, 2008
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	236		$	233
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2009 and 2008)		109			135
Basis of Real Estate Sold		155			149
Equity Earnings from Timberland Venture		(55	)		(15	)
Distributions from Timberland Venture		53			—
Expenditures for Real Estate Development		(1	)		(7	)
Deferred Income Taxes		(14	)		(10	)
Gain on Sales of Properties and Other Assets		—			(3	)
(Gain) Loss on Extinguishment of Debt		2			(11	)
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		(6	)		18
Pension Plan Contributions		(10	)		(30	)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		48			(48	)
Income Tax Receivable		8			(19	)
Other Working Capital Changes		5			11
Other		10			17
Net Cash Provided By Operating Activities		540			420
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(61	)		(70	)
Timberlands Acquired		(1	)		(119	)
Investment in Timberland Venture		—			(9	)
Purchases of Marketable Securities		(3	)		(7	)
Other		1			—
Net Cash Used In Investing Activities		(64	)		(205	)
Cash Flows From Financing Activities:
Dividends		(275	)		(286	)
Borrowings on Line of Credit		1,073			1,506
Repayments on Line of Credit		(984	)		(1,831	)
Proceeds from Issuance of Long-Term Debt		—			250
Principal Payments and Retirement of Long-Term Debt		(273	)		(258	)
Note Payable to Timberland Venture		—			783
Proceeds from Stock Option Exercises		—			14
Acquisition of Treasury Stock		(87	)		(264	)
Net Cash Used In Financing Activities		(546	)		(86	)
Increase (Decrease) In Cash and Cash Equivalents		(70	)		129
Cash and Cash Equivalents:
Beginning of Period		369			240
End of Period	$	299		$	369
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, 2009			December 31, 2008
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	28		$	95
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization		24			26
Basis of Real Estate Sold		16			100
Equity Earnings from Timberland Venture		(12	)		(15	)
Expenditures for Real Estate Development		—			(1	)
Deferred Income Taxes		7			1
(Gain) Loss on Extinguishment of Debt		3			(11	)
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		(1	)		1
Pension Plan Contributions		(2	)		(23	)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		—			21
Income Tax Receivable		(9	)		(19	)
Other Working Capital Changes		(7	)		12
Other		1			8
Net Cash Provided By Operating Activities		48			195
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(16	)		(23	)
Timberlands Acquired		—			(54	)
Investment in Timberland Venture		—			(9	)
Purchases of Marketable Securities		(3	)		(6	)
Other		1			—
Net Cash Used In Investing Activities		(18	)		(92	)
Cash Flows From Financing Activities:
Dividends		(68	)		(70	)
Borrowings on Line of Credit		378			231
Repayments on Line of Credit		(322	)		(432	)
Principal Payments and Retirement of Long-Term Debt		(70	)		(208	)
Note Payable to Timberland Venture		—			783
Acquisition of Treasury Stock		—			(213	)
Net Cash Provided by (Used In) Financing Activities		(82	)		91
Increase (Decrease) In Cash and Cash Equivalents		(52	)		194
Cash and Cash Equivalents:
Beginning of Period		351			175
End of Period	$	299		$	369
Non-Cash Investing Activity
Contribution of Timber and Timberlands to Timberland Venture	$	—		$	174

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Twelve Months 2009			Twelve Months 2008
	(In Millions)
Revenues:
Northern Resources	$	212		$	347
Southern Resources		347			461
Real Estate		486			432
Manufacturing		245			405
Other		18			25
Eliminations		(14	)		(56	)
Total Revenues	$	1,294		$	1,614
Operating Income (Loss)
Northern Resources	$	(3	)	$	41
Southern Resources		81			128
Real Estate		278			245
Manufacturing		(23	)		(44	)
Other		17			23
Other Costs and Eliminations		(51	)		(64	)
Other Operating Income (Expense), net		—			(1	)
Total Operating Income	$	299		$	328

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Fourth Quarter 2009			Fourth Quarter 2008
	(In Millions)
Revenues:
Northern Resources	$	57		$	84
Southern Resources		81			95
Real Estate		67			215
Manufacturing		56			75
Other		4			6
Eliminations		(7	)		(14	)
Total Revenues	$	258		$	461
Operating Income (Loss)
Northern Resources	$	(1	)	$	8
Southern Resources		17			25
Real Estate		44			104
Manufacturing		—			(20	)
Other		4			6
Other Costs and Eliminations		(15	)		(17	)
Other Operating Income (Expense), net		—			(3	)
Total Operating Income	$	49		$	103

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

		2009										2008
		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	$	24	$	22	$	22	$	21	$	22	$	29	$	26	$	25	$	26	$	26
Pulpwood	$/Ton Stumpage	$	11	$	9	$	9	$	10	$	10	$	10	$	10	$	10	$	12	$	10
Northern Resources
Sawlog	$/Ton Delivered	$	57	$	50	$	56	$	56	$	55	$	67	$	68	$	74	$	68	$	69
Pulpwood	$/Ton Delivered	$	43	$	38	$	38	$	38	$	40	$	39	$	43	$	45	$	44	$	43
Lumber (1)	$/MBF	$	374	$	340	$	448	$	477	$	397	$	366	$	367	$	384	$	367	$	371
Plywood (1)	$/MSF	$	362	$	353	$	361	$	352	$	357	$	398	$	404	$	396	$	382	$	397
Fiberboard (1)	$/MSF	$	601	$	593	$	596	$	599	$	597	$	591	$	600	$	610	$	625	$	604
Sales Volume
Southern Resources
Sawlog	1,000 Tons		942		1,217		1,250		993		4,402		1,459		1,666		1,425		1,020		5,570
Pulpwood	1,000 Tons		1,487		1,849		2,014		1,649		6,999		1,976		2,221		2,089		1,741		8,027
Total Harvest			2,429		3,066		3,264		2,642		11,401		3,435		3,887		3,514		2,761		13,597
Northern Resources
Sawlog	1,000 Tons		525		371		632		609		2,137		978		739		828		821		3,366
Pulpwood	1,000 Tons		613		397		691		567		2,268		738		504		725		649		2,616
Total Harvest			1,138		768		1,323		1,176		4,405		1,716		1,243		1,553		1,470		5,982
Lumber	MBF		35,123		60,371		40,590		28,428		164,512		69,596		83,477		74,100		62,660		289,833
Plywood	MSF		35,439		40,729		41,479		37,271		154,918		68,746		68,616		62,112		37,509		236,983
Fiberboard	MSF		34,044		32,802		34,282		30,964		132,092		58,784		63,205		44,371		31,071		197,431

(1) Represents prices at mill level.

Plum Creek Timber Company, Inc.

Land Sale Statistics

(Unaudited)

	2009										2008
	1st Qtr (1)		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr (2)		YTD
Acres Sold
Small Non-strategic		1,665		9,840		5,545		2,570		19,620		17,145		13,215		14,800		47,125		92,285
Large Non-strategic		—		59,160		—		—		59,160		—		—		—		—		—
Conservation		113,355		3,895		43,695		4,910		165,855		1,015		595		39,880		134,250		175,740
HBU/Recreation		2,180		10,955		10,440		26,700		50,275		10,635		11,785		15,640		7,550		45,610
Development Properties		1,485		25		515		35		2,060		65		700		10		45		820
Conservation Easements		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
		118,685		83,875		60,195		34,215		296,970		28,860		26,295		70,330		188,970		314,455
Price per Acre
Small Non-strategic	$	1,330	$	900	$	970	$	855	$	950	$	1,180	$	1,285	$	1,145	$	745	$	965
Large Non-strategic		—	$	650		—		—	$	650		—		—		—		—		—
Conservation	$	2,225	$	1,705	$	350	$	1,280	$	1,690	$	395	$	1,555	$	1,035	$	1,170	$	1,140
HBU/Recreation	$	3,420	$	2,200	$	2,115	$	2,200	$	2,235	$	2,875	$	2,740	$	3,220	$	2,965	$	2,975
Development Properties	$	4,075	$	13,650	$	9,190	$	7,485	$	5,520	$	5,825	$	9,630	$	13,130	$	4,095	$	8,770
Conservation Easements		—		—		—		—		—		—		—		—		—		—
Revenue, ($ millions)
Small Non-strategic	$	2	$	9	$	5	$	2	$	19	$	20	$	17	$	17	$	35	$	89
Large Non-strategic		—	$	38		—		—	$	38		—		—		—		—		—
Conservation	$	252	$	7	$	15	$	6	$	280		—	$	1	$	41	$	157	$	200
HBU/Recreation	$	7	$	24	$	22	$	59	$	112	$	31	$	32	$	50	$	22	$	136
Development Properties	$	6		—	$	5		—	$	12		—	$	7		—		—	$	7
Conservation Easements		—		—		—		—		—		—		—		—		—		—
	$	268	$	78	$	48	$	67	$	461	$	52	$	57	$	108	$	215	$	432
Revenue from Non-Cash Exchange(4)		—		—	$	25		—	$	25		—		—		—		—		—
Basis of Real Estate Sold(3)	$	89	$	29	$	21	$	16	$	155	$	10	$	13	$	26	$	100	$	149

(1) During the 1st quarter of 2009 we sold 112,000 acres in Montana to a conservation buyer for $250 million. The sale is presented as a Conservation sale. The transaction included 56,000 acres of Conservation property, 10,000 acres of Small Non-strategic property, 45,000 acres of HBU/Recreation property, and 1,000 acres of Development property.

(2) 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.

(3) Includes $16 million in the second quarter of 2009 for a a 59,000 acre Large Non-strategic sale in Wisconsin, $85 million in the first quarter of 2009 for a 112,000 acre conservation sale in Montana and $75 million in the fourth quarter of 2008 for a 130,000 acre conservation sale in Montana.

(4) During the 3rd quarter of 2009 we completed a non-cash exchange with the State of Washington. We relinquished 20,600 acres, in King County, in exchange for 37 parcels containing more than 6,000 acres in nine counties.

PLUM CREEK TIMBER COMPANY, INC.

DEBT MATURITIES SCHEDULE

December 31, 2009

(UNAUDITED)

	Borrowings(1)
	Principal	Weighted Avg. Interest Rate
Quarterly Maturities through 2010:
1st Qtr 2010	53	5.480	%
4th Qtr 2010	3	8.050	%
Annual Maturities through 2014:
2011	308	7.732	%	(2	)
2012	603	—		(3	)
2013	250	6.663	%	(4	)
2014	3	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 $40 million, $3 million, $216 million and $49 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 $3 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 $3 million, $73 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, 2009
Alabama	98,000
Arkansas	766,000
Florida	590,000
Georgia	767,000
Louisiana	461,000
Maine	884,000
Michigan	591,000
Mississippi	665,000
Montana	972,000
New Hampshire	33,000
North Carolina	9,000
Oklahoma	6,000
Oregon	429,000
South Carolina	187,000
Texas	44,000
Vermont	86,000
Washington	102,000
West Virginia	112,000
Wisconsin	250,000
Total	7,052,000