Plum Creek Timber (PCL) 8-K Plum Creek Reports Results for Fourth Quarter and Full Year 2010

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Twelve Months Ended
	December 31,     2010			December 31,     2009
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	569		$	545
Real Estate		336			486
Manufacturing		265			245
Other		20			18
Total Revenues		1,190			1,294
Costs and Expenses:
Cost of Goods Sold:
Timber		421			431
Real Estate		148			200
Manufacturing		236			257
Other		2			1
Total Cost of Goods Sold		807			889
Selling, General and Administrative		95			106
Total Costs and Expenses		902			995
Other Operating Income (Expense), net		9			—
Operating Income		297			299
Equity Earnings from Timberland Venture		57			55
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)		80			89
Interest Expense (Note Payable to Timberland Venture)		58			58
Total Interest Expense, net		138			147
Loss on Extinguishment of Debt		(13	)		(2	)
Income before Income Taxes		203			205
Provision (Benefit) for Income Taxes		1			(31	)
Income from Continuing Operations		202			236
Gain on Sale of Properties, net of tax		11			—
Net Income	$	213		$	236
Per Share Amounts:
Income from Continuing Operations - Basic	$	1.25		$	1.45
Income from Continuing Operations - Diluted	$	1.24		$	1.44
Net Income per Share - Basic	$	1.31		$	1.45
Net Income per Share - Diluted	$	1.31		$	1.44
Weighted Average Number of Shares Outstanding
- Basic		162.1			163.3
- Diluted		162.3			163.4

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Quarter Ended
	December 31,     2010			December 31,     2009
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	140		$	131
Real Estate		155			67
Manufacturing		57			56
Other		4			4
Total Revenues		356			258
Costs and Expenses:
Cost of Goods Sold:
Timber		104			105
Real Estate		79			21
Manufacturing		52			52
Other		1			—
Total Cost of Goods Sold		236			178
Selling, General and Administrative		25			31
Total Costs and Expenses		261			209
Other Operating Income (Expense), net		—			—
Operating Income		95			49
Equity Earnings from Timberland Venture		13			12
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)		21			20
Interest Expense (Note Payable to Timberland Venture)		15			15
Total Interest Expense, net		36			35
Loss on Extinguishment of Debt		(13	)		(3	)
Income before Income Taxes		59			23
Benefit for Income Taxes		—			(5	)
Net Income	$	59		$	28
Per Share Amounts:
Net Income per Share - Basic	$	0.37		$	0.17
Net Income per Share - Diluted	$	0.37		$	0.17
Weighted Average Number of Shares Outstanding
- Basic		161.6			162.8
- Diluted		161.9			163.0

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	December 31,     2010			December 31,     2009
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	252		$	299
Accounts Receivable		21			24
Taxes Receivable		2			15
Inventories		49			46
Deferred Tax Asset		7			6
Assets Held for Sale		57			115
Other Current Assets		22			14
		410			519
Timber and Timberlands, net		3,405			3,487
Property, Plant and Equipment, net		146			156
Equity Investment in Timberland Venture		201			201
Deferred Tax Asset		10			14
Investment in Grantor Trusts (at Fair Value)		35			33
Other Assets		44			38
Total Assets	$	4,251		$	4,448
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	94		$	55
Line of Credit		166			320
Accounts Payable		25			32
Interest Payable		23			25
Wages Payable		23			20
Taxes Payable		12			14
Deferred Revenue		25			16
Other Current Liabilities		7			21
		375			503
Long-Term Debt		1,643			1,625
Note Payable to Timberland Venture		783			783
Other Liabilities		76			71
Total Liabilities		2,877			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) - 161.6 at December 31, 2010, and 162.8 at December 31, 2009		2			2
Additional Paid-In Capital		2,243			2,233
Retained Earnings		51			110
Treasury Stock, at cost, Common Shares - 26.2 at December 31, 2010, and 24.8 at December 31, 2009		(911	)		(860	)
Accumulated Other Comprehensive Income (Loss)		(11	)		(19	)
Total Stockholders’ Equity		1,374			1,466
Total Liabilities and Stockholders’ Equity	$	4,251		$	4,448

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Twelve Months Ended
	December 31, 2010			December 31, 2009
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	213		$	236
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2009)		96			109
Basis of Real Estate Sold		132			155
Equity Earnings from Timberland Venture		(57	)		(55	)
Distributions from Timberland Venture		57			53
Deferred Income Taxes		1			(14	)
Gain on Sales of Properties and Other Assets		(13	)		—
Loss on Extinguishment of Debt		13			2
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		3			(6	)
Pension Plan Contributions		(4	)		(10	)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		—			48
Income Tax Receivable		13			8
Other Working Capital Changes		(17	)		5
Other		12			9
Net Cash Provided By Operating Activities		449			540
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(71	)		(61	)
Timberlands Acquired		—			(1	)
Proceeds from Sales of Properties and Other Assets		13			1
Purchases of Marketable Securities		(2	)		(3	)
Other		2			—
Net Cash Used In Investing Activities		(58	)		(64	)
Cash Flows From Financing Activities:
Dividends		(272	)		(275	)
Borrowings on Line of Credit		1,783			1,073
Repayments on Line of Credit		(1,937	)		(984	)
Proceeds from Issuance of Long-Term Debt		575			—
Debt Issuance Costs		(7	)		—
Principal Payments and Retirement of Long-Term Debt		(531	)		(273	)
Proceeds from Stock Option Exercises		2			—
Acquisition of Treasury Stock		(51	)		(87	)
Net Cash Used In Financing Activities		(438	)		(546	)
Increase (Decrease) In Cash and Cash Equivalents		(47	)		(70	)
Cash and Cash Equivalents:
Beginning of Period		299			369
End of Period	$	252		$	299

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended
	December 31, 2010			December 31, 2009
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	59		$	28
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization		24			24
Basis of Real Estate Sold		75			16
Equity Earnings from Timberland Venture		(13	)		(12	)
Distributions from Timberland Venture		1			—
Deferred Income Taxes		—			7
Loss on Extinguishment of Debt		13			3
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		(2	)		(1	)
Pension Plan Contributions		—			(2	)
Working Capital Changes Impacting Cash Flow:
Income Tax Receivable		(1	)		(9	)
Other Working Capital Changes		(15	)		(7	)
Other		(4	)		1
Net Cash Provided By Operating Activities		137			48
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(20	)		(16	)
Proceeds from Sales of Properties and Other Assets		—			1
Purchases of Marketable Securities		(2	)		(3	)
Other		1			—
Net Cash Used In Investing Activities		(21	)		(18	)
Cash Flows From Financing Activities:
Dividends		(67	)		(68	)
Borrowings on Line of Credit		278			378
Repayments on Line of Credit		(432	)		(322	)
Proceeds from Issuance of Long-Term Debt		575			—
Debt Issuance Costs		(7	)		—
Principal Payments and Retirement of Long-Term Debt		(478	)		(70	)
Net Cash Used In Financing Activities		(131	)		(82	)
Increase (Decrease) In Cash and Cash Equivalents		(15	)		(52	)
Cash and Cash Equivalents:
Beginning of Period		267			351
End of Period	$	252		$	299

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Twelve Months 2010			Twelve Months 2009
	(In Millions)
Revenues:
Northern Resources	$	210		$	212
Southern Resources		377			347
Real Estate		336			486
Manufacturing		265			245
Other		20			18
Eliminations		(18	)		(14	)
Total Revenues	$	1,190		$	1,294
Operating Income (Loss)
Northern Resources	$	13		$	(3	)
Southern Resources		107			81
Real Estate		180			278
Manufacturing		24			(23	)
Other(A)		23			17
Other Costs and Eliminations, net		(50	)		(51	)
Total Operating Income	$	297		$	299

^(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 Operating Gain/(Loss) in our Other Segment since the consideration was primarily for the release of mineral rights. The $5 million is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Fourth Quarter 2010			Fourth Quarter 2009
	(In Millions)
Revenues:
Northern Resources	$	48		$	57
Southern Resources		97			81
Real Estate		155			67
Manufacturing		57			56
Other		4			4
Eliminations		(5	)		(7	)
Total Revenues	$	356		$	258
Operating Income (Loss)
Northern Resources	$	1		$	(1	)
Southern Resources		28			17
Real Estate		73			44
Manufacturing		3			—
Other		3			4
Other Costs and Eliminations, net		(13	)		(15	)
Total Operating Income	$	95		$	49

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

		2010										2009
		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	$	23	$	23	$	23	$	22	$	23	$	24	$	22	$	22	$	21	$	22
Pulpwood	$/Ton Stumpage	$	13	$	12	$	11	$	10	$	12	$	11	$	9	$	9	$	10	$	10
Northern Resources
Sawlog	$/Ton Delivered	$	59	$	66	$	66	$	62	$	63	$	57	$	50	$	56	$	56	$	55
Pulpwood	$/Ton Delivered	$	38	$	38	$	39	$	39	$	39	$	43	$	38	$	38	$	38	$	40
Lumber (1)	$/MBF	$	501	$	522	$	490	$	514	$	507	$	374	$	340	$	448	$	477	$	397
Plywood (1)	$/MSF	$	352	$	397	$	388	$	374	$	378	$	362	$	353	$	361	$	352	$	357
Fiberboard (1)	$/MSF	$	588	$	607	$	629	$	598	$	606	$	601	$	593	$	596	$	599	$	597
Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,274		1,122		1,209		1,416		5,021		942		1,217		1,250		993		4,402
Pulpwood	1,000 Tons		1,526		1,448		1,674		1,798		6,446		1,487		1,849		2,014		1,649		6,999
Total Harvest			2,800		2,570		2,883		3,214		11,467		2,429		3,066		3,264		2,642		11,401
Northern Resources
Sawlog	1,000 Tons		627		484		537		486		2,134		525		371		632		609		2,137
Pulpwood	1,000 Tons		527		348		517		431		1,823		613		397		691		567		2,268
Total Harvest			1,154		832		1,054		917		3,957		1,138		768		1,323		1,176		4,405
Lumber	MBF		28,791		30,813		29,305		27,181		116,090		35,123		60,371		40,590		28,428		164,512
Plywood	MSF		45,104		47,002		44,223		36,387		172,716		35,439		40,729		41,479		37,271		154,918
Fiberboard	MSF		35,347		50,010		39,394		32,266		157,017		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)		2nd Qtr		3rd Qtr		4th Qtr (2)		YTD		1st Qtr (3)		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		29,640		1,950		10,270		21,375		63,235		1,665		9,840		5,545		2,570		19,620
Large Non-strategic		24,310		—		—		—		24,310		—		59,160		—		—		59,160
Conservation		35,120		215		2,870		77,900		116,105		113,355		3,895		43,695		4,910		165,855
HBU/Recreation		9,080		18,175		9,870		16,140		53,265		2,180		10,955		10,440		26,700		50,275
Development Properties		730		60		—		55		845		1,485		25		515		35		2,060
Conservation Easements		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a
		98,880		20,400		23,010		115,470		257,760		118,685		83,875		60,195		34,215		296,970
Price per Acre
Small Non-strategic	$	885	$	1,120	$	1,025	$	1,045	$	970	$	1,330	$	900	$	970	$	855	$	950
Large Non-strategic	$	1,320		—		—		—	$	1,320		—	$	650		—		—	$	650
Conservation	$	545	$	1,450	$	1,865	$	1,245	$	1,050	$	2,225	$	1,705	$	350	$	1,280	$	1,690
HBU/Recreation	$	2,125	$	2,210	$	2,335	$	1,950	$	2,140	$	3,420	$	2,200	$	2,115	$	2,200	$	2,235
Development Properties	$	3,050	$	5,985		—	$	5,535	$	3,415	$	4,075	$	13,650	$	9,190	$	7,485	$	5,520
Conservation Easements		—		—		—	$	455	$	455		—		—		—		—		—
Revenue, ($ millions)
Small Non-strategic	$	26	$	2	$	11	$	22	$	61	$	2	$	9	$	5	$	2	$	19
Large Non-strategic	$	32		—		—		—	$	32		—	$	38		—		—	$	38
Conservation	$	19		—	$	5	$	97	$	122	$	252	$	7	$	15	$	6	$	280
HBU/Recreation	$	19	$	40	$	23	$	31	$	114	$	7	$	24	$	22	$	59	$	112
Development Properties	$	2		—		—		—	$	3	$	6		—	$	5		—	$	12
Conservation Easements		—		—		—	$	4	$	4		—		—		—		—		—
	$	99	$	43	$	39	$	155	$	336	$	268	$	78	$	48	$	67	$	461
Revenue from Non-Cash Exchange (4)		—		—		—		—		—		—		—	$	25		—	$	25
Basis of Real Estate Sold(5)	$	32	$	11	$	14	$	75	$	132	$	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 fourth quarter of 2010 the company sold 69,600 acres in Montana to a conservation buyer for $88.8 million. The sale is presented as a Conservation sale. The transaction included 60,900 acres of Conservation property and 8,700 acres of HBU property.

(3) During the first quarter of 2009 the company 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.

(4) During the third quarter of 2009 the company 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.

(5) Includes $52 million in the fourth quarter of 2010 from a 69,600 acre conservation sale in Montana, $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

December 31, 2010

(UNAUDITED)

	Borrowings
	Principal		Weighted Avg. Interest Rate
Quarterly Maturities through 2011:
1st Qtr 2011	$	49		7.830	%
4th Qtr 2011	$	46		7.712	%(1)
Annual Maturities through 2014:
2012	$	353		—	(2)
2013	$	250		6.663	%(3)
2014	$	3		8.050	%

(1) Principal amount composed of senior notes with principal amounts of $3 million, $3 million and $40 million and interest rates of 7.970%, 8.050% and 7.660%, respectively.

(2) Includes $350 million for the company's term credit agreement, interest rate currently based on LIBOR plus 0.45% and senior notes with principal of $3 million and an interest rate of 8.050%.

(3) 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, 2010
Alabama		98,000
Arkansas		747,000
Florida		582,000
Georgia		742,000
Louisiana		427,000
Maine		883,000
Michigan		588,000
Mississippi		641,000
Montana		901,000
New Hampshire		30,000
North Carolina		4,000
Oklahoma		6,000
Oregon		426,000
South Carolina		173,000
Texas		34,000
Vermont		86,000
Washington		95,000
West Virginia		111,000
Wisconsin		197,000
Total		6,771,000