Plum Creek Timber (PCL) 8-K Plum Creek Timber Company, Inc. Reports Results for First Quarter 2010

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Three Months Ended
	March 31, 2010			March 31, 2009
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	151		$	139
Real Estate		99			268
Manufacturing		60			58
Other		7			5
Total Revenues		317			470
Costs and Expenses:
Cost of Goods Sold:
Timber		109			108
Real Estate		35			95
Manufacturing		54			76
Other		—			—
Total Cost of Goods Sold		198			279
Selling, General and Administrative		29			32
Total Costs and Expenses		227			311
Other Operating Income (Expense), net		5			—
Operating Income		95			159
Equity Earnings from Timberland Venture		14			15
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)		20			24
Interest Expense (Note Payable to Timberland Venture)		14			14
Total Interest Expense, net		34			38
Gain on Extinguishment of Debt		—			1
Income before Income Taxes		75			137
Benefit for Income Taxes		(1	)		(20	)
Income from Continuing Operations		76			157
Gain on Sale of Properties, net of tax		11			—
Net Income	$	87		$	157
Per Share Amounts:
Income from Continuing Operations - Basic	$	0.47		$	0.95
Income from Continuing Operations - Diluted	$	0.47		$	0.95
Net Income per Share - Basic	$	0.54		$	0.95
Net Income per Share - Diluted	$	0.54		$	0.95
Weighted Average Number of Shares Outstanding
- Basic		162.9			164.7
- Diluted		163.1			164.8

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	March 31,     2010			December 31, 2009
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	304		$	299
Accounts Receivable		32			24
Taxes Receivable		15			15
Inventories		49			46
Deferred Tax Asset		7			6
Assets Held for Sale		87			115
Other Current Assets		22			14
		516			519
Timber and Timberlands, net		3,477			3,487
Property, Plant and Equipment, net		153			156
Equity Investment in Timberland Venture		187			201
Deferred Tax Asset		12			14
Investment in Grantor Trusts (at Fair Value)		33			33
Other Assets		36			38
Total Assets	$	4,414		$	4,448
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	51		$	55
Accounts Payable		35			32
Interest Payable		34			25
Wages Payable		9			20
Taxes Payable		13			14
Deferred Revenue		15			16
Other Current Liabilities		12			21
		169			183
Long-Term Debt		1,577			1,625
Line of Credit		320			320
Note Payable to Timberland Venture		783			783
Other Liabilities		79			71
Total Liabilities		2,928			2,982
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) - 162.9 at March 31, 2010, and 162.8 at December 31, 2009		2			2
Additional Paid-In Capital		2,236			2,233
Retained Earnings		129			110
Treasury Stock, at cost, Common Shares - 24.8 at March 31, 2010, and 24.8 at December 31, 2009		(861	)		(860	)
Accumulated Other Comprehensive Income (Loss)		(20	)		(19	)
Total Stockholders’ Equity		1,486			1,466
Total Liabilities and Stockholders’ Equity	$	4,414		$	4,448

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended
	March 31, 2010			March 31, 2009
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	87		$	157
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2009)		24			33
Basis of Real Estate Sold		32			89
Equity Earnings from Timberland Venture		(14	)		(15	)
Distributions from Timberland Venture		28			25
Deferred Income Taxes		1			(17	)
Gain on Sales of Properties		(11	)		—
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		8			(2	)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		—			45
Other Working Capital Changes		(32	)		(31	)
Other		6			—
Net Cash Provided By Operating Activities		129			284
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(13	)		(17	)
Proceeds from Sales of Properties		11			—
Net Cash Used In Investing Activities		(2	)		(17	)
Cash Flows From Financing Activities:
Dividends		(68	)		(69	)
Borrowings on Line of Credit		568			225
Repayments on Line of Credit		(568	)		(245	)
Principal Payments and Retirement of Long-Term Debt		(53	)		(105	)
Acquisition of Treasury Stock		(1	)		(87	)
Net Cash Used In Financing Activities		(122	)		(281	)
Increase (Decrease) In Cash and Cash Equivalents		5			(14	)
Cash and Cash Equivalents:
Beginning of Period		299			369
End of Period	$	304		$	355

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Three Months 2010			Three Months 2009
	(In Millions)
Revenues:
Northern Resources	$	59		$	57
Southern Resources		98			83
Real Estate		99			268
Manufacturing		60			58
Other		7			5
Eliminations		(6	)		(1	)
Total Revenues	$	317		$	470
Operating Income (Loss)
Northern Resources	$	4		$	2
Southern Resources		30			20
Real Estate		62			170
Manufacturing		4			(22	)
Other(A)		11			5
Other Costs and Eliminations		(16	)		(16	)
Other Unallocated Operating Income (Expense), net		—			—
Total Operating Income	$	95		$	159

^(A) During the first quarter of 2010, the company agreed to terminate a land lease for consideration of $5 million from the lessor. The land lease had been accounted for as an operating lease. The $5 million consideration is reported as other gain/loss in our Other Segment since the consideration was primarily for the release of mineral rights. The $5 million consideration is reported as Other Operating Income (Expense), net in our Consolidated Statements of Income.

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

		2010		2009
		1st Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	23	$	24	$	22	$	22	$	21	$	22
Pulpwood	$/Ton Stumpage	$	13	$	11	$	9	$	9	$	10	$	10
Northern Resources
Sawlog	$/Ton Delivered	$	59	$	57	$	50	$	56	$	56	$	55
Pulpwood	$/Ton Delivered	$	38	$	43	$	38	$	38	$	38	$	40
Lumber (1)	$/MBF	$	501	$	374	$	340	$	448	$	477	$	397
Plywood (1)	$/MSF	$	352	$	362	$	353	$	361	$	352	$	357
Fiberboard (1)	$/MSF	$	588	$	601	$	593	$	596	$	599	$	597
Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,274		942		1,217		1,250		993		4,402
Pulpwood	1,000 Tons		1,526		1,487		1,849		2,014		1,649		6,999
Total Harvest			2,800		2,429		3,066		3,264		2,642		11,401
Northern Resources
Sawlog	1,000 Tons		627		525		371		632		609		2,137
Pulpwood	1,000 Tons		527		613		397		691		567		2,268
Total Harvest			1,154		1,138		768		1,323		1,176		4,405
Lumber	MBF		28,791		35,123		60,371		40,590		28,428		164,512
Plywood	MSF		45,104		35,439		40,729		41,479		37,271		154,918
Fiberboard	MSF		35,347		34,044		32,802		34,282		30,964		132,092

(1) Represents prices at mill level.

Plum Creek Timber Company, Inc.

Land Sale Statistics

(Unaudited)

	2010		2009
	1st Qtr (1)		1st Qtr (2)		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		29,640		1,665		9,840		5,545		2,570		19,620
Large Non-strategic		24,310		—		59,160		—		—		59,160
Conservation		35,120		113,355		3,895		43,695		4,910		165,855
HBU/Recreation		9,080		2,180		10,955		10,440		26,700		50,275
Development Properties		730		1,485		25		515		35		2,060
Conservation Easements		n/a		n/a		n/a		n/a		n/a		n/a
		98,880		118,685		83,875		60,195		34,215		296,970
Price per Acre
Small Non-strategic	$	885	$	1,330	$	900	$	970	$	855	$	950
Large Non-strategic	$	1,320		—	$	650		—		—	$	650
Conservation	$	545	$	2,225	$	1,705	$	350	$	1,280	$	1,690
HBU/Recreation	$	2,125	$	3,420	$	2,200	$	2,115	$	2,200	$	2,235
Development Properties	$	3,050	$	4,075	$	13,650	$	9,190	$	7,485	$	5,520
Conservation Easements		—		—		—		—		—		—
Revenue, ($ millions)
Small Non-strategic	$	26	$	2	$	9	$	5	$	2	$	19
Large Non-strategic	$	32		—	$	38		—		—	$	38
Conservation	$	19	$	252	$	7	$	15	$	6	$	280
HBU/Recreation	$	19	$	7	$	24	$	22	$	59	$	112
Development Properties	$	2	$	6		—	$	5		—	$	12
Conservation Easements		—		—		—		—		—		—
	$	99	$	268	$	78	$	48	$	67	$	461
Revenue from Non-Cash Exchange (3)		—		—		—	$	25		—	$	25
Basis of Real Estate Sold (4)	$	32	$	89	$	29	$	21	$	16	$	155

(1) During the first quarter of 2010 the company sold 24,000 acres of Large Non-strategic lands located in Louisiana for $32 million. In addition, the company sold two larger Conservation properties totaling 35,000 acres in Wisconsin and Arkansas and an aggregation of 23,000 acres of Small Non-strategic timberlands located primarily in the Lake States region.

(2) 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.

(3) 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.

(4) Includes $7 million in the first quarter of 2010 for a 24,000 acre Large Non-strategic sale in Louisiana, $16 million in the second quarter of 2009 for a 59,000 acre Large Non-strategic sale in Wisconsin and $85 million in the first quarter of 2009 for a 112,000 acre Conservation sale in Montana.

PLUM CREEK TIMBER COMPANY, INC.

DEBT MATURITIES SCHEDULE

March 31, 2010

(UNAUDITED)

	Borrowings (1)
	Principal	Weighted Avg. Interest Rate
Quarterly Maturities through 2010:
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.