Plum Creek Timber (PCL) 8-K Plum Creek Timber Company, Inc. Reports Results for First Quarter 2011

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

	Quarter Ended
	March 31, 2011		March 31, 2010
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	141	$	151
Real Estate		62		99
Manufacturing		67		60
Other		5		7
Total Revenues		275		317
Costs and Expenses:
Cost of Goods Sold:
Timber		107		109
Real Estate		22		35
Manufacturing		61		54
Other		—		—
Total Cost of Goods Sold		190		198
Selling, General and Administrative		28		29
Total Costs and Expenses		218		227
Other Operating Income (Expense), net		3		5
Operating Income		60		95
Equity Earnings from Timberland Venture		14		14
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)		21		20
Interest Expense (Note Payable to Timberland Venture)		14		14
Total Interest Expense, net		35		34
Income before Income Taxes		39		75
Provision (Benefit) for Income Taxes		1		(1	)
Income from Continuing Operations		38		76
Gain on Sale of Properties, net of tax		—		11
Net Income	$	38	$	87
Per Share Amounts:
Income from Continuing Operations – Basic	$	0.23	$	0.47
Income from Continuing Operations – Diluted	$	0.23	$	0.47
Net Income per Share – Basic	$	0.23	$	0.54
Net Income per Share – Diluted	$	0.23	$	0.54
Dividends Declared – per Common Share Outstanding	$	0.42	$	0.42
Weighted Average Number of Shares Outstanding
- Basic		161.8		162.9
- Diluted		162.1		163.1

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	March 31,    2011			December 31, 2010
	(In Millions, Except Per Share Amounts)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	254		$	252
Accounts Receivable		32			21
Taxes Receivable		4			2
Inventories		52			49
Deferred Tax Asset		8			7
Assets Held for Sale		38			57
Other Current Assets		15			22
		403			410
Timber and Timberlands, net		3,398			3,405
Property, Plant and Equipment, net		144			146
Equity Investment in Timberland Venture		187			201
Deferred Tax Asset		6			10
Investment in Grantor Trusts (at Fair Value)		37			35
Other Assets		42			44
Total Assets	$	4,217		$	4,251
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	45		$	94
Line of Credit		215			166
Accounts Payable		30			25
Interest Payable		26			23
Wages Payable		8			23
Taxes Payable		10			12
Deferred Revenue		20			25
Other Current Liabilities		9			7
		363			375
Long-Term Debt		1,643			1,643
Note Payable to Timberland Venture		783			783
Other Liabilities		75			76
Total Liabilities		2,864			2,877
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)  – 161.9 at March 31, 2011, and 161.6 at December 31, 2010		2			2
Additional Paid-In Capital		2,252			2,243
Retained Earnings		21			51
Treasury Stock, at cost, Common Shares – 26.2 at March 31, 2011, and 26.2 at December 31, 2010		(912	)		(911	)
Accumulated Other Comprehensive Income (Loss)		(10	)		(11	)
Total Stockholders’ Equity		1,353			1,374
Total Liabilities and Stockholders’ Equity	$	4,217		$	4,251

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended
	March 31, 2011			March 31, 2010
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	38		$	87
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization		22			24
Basis of Real Estate Sold		19			32
Equity Earnings from Timberland Venture		(14	)		(14	)
Distributions from Timberland Venture		28			28
Deferred Income Taxes		3			1
Gain on Sales of Properties and Other Assets		—			(11	)
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		7			8
Working Capital Changes		(30	)		(32	)
Other		3			6
Net Cash Provided By Operating Activities		76			129
Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(12	)		(13	)
Proceeds from Sales of Properties and Other Assets		—			11
Net Cash Used In Investing Activities		(12	)		(2	)
Cash Flows From Financing Activities:
Dividends		(68	)		(68	)
Borrowings on Line of Credit		245			568
Repayments on Line of Credit		(196	)		(568	)
Principal Payments and Retirement of Long-Term Debt		(49	)		(53	)
Proceeds from Stock Option Exercises		7			—
Acquisition of Treasury Stock		(1	)		(1	)
Net Cash Used In Financing Activities		(62	)		(122	)
Increase (Decrease) In Cash and Cash Equivalents		2			5
Cash and Cash Equivalents:
Beginning of Period		252			299
End of Period	$	254		$	304

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

	Three Months Ended
	March 31, 2011			March 31, 2010
	(In Millions)
Revenues:
Northern Resources	$	55		$	59
Southern Resources		89			98
Real Estate		62			99
Manufacturing		67			60
Other		5			7
Eliminations		(3	)		(6	)
Total Revenues	$	275		$	317
Operating Income (Loss)
Northern Resources	$	7		$	4
Southern Resources		19			30
Real Estate		38			62
Manufacturing		4			4
Other(A)		7			11
Other Costs and Eliminations, net		(15	)		(16	)
Total Operating Income	$	60		$	95

^(A)  During the first quarter of 2011, the company received a payment of $2 million for the settlement of a dispute that related to certain mineral rights. During the first quarter of 2010, the company agreed to terminate a land lease, accounted for as an operating lease, for consideration of $5 million from the lessor. The consideration was primarily for the release of mineral rights. These amounts are reported as Other Operating Gain/(Loss) in our Other Segment and are included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

		2011		2010
		1st Qtr		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	20	$	23	$	23	$	23	$	22	$	23
Pulpwood	$/Ton Stumpage	$	10	$	13	$	12	$	11	$	10	$	12
Northern Resources
Sawlog	$/Ton Delivered	$	69	$	59	$	66	$	66	$	62	$	63
Pulpwood	$/Ton Delivered	$	40	$	38	$	38	$	39	$	39	$	39
Lumber (1)	$/MBF	$	533	$	501	$	522	$	490	$	514	$	507
Plywood (1)	$/MSF	$	371	$	352	$	397	$	388	$	374	$	378
Fiberboard (1)	$/MSF	$	608	$	588	$	607	$	629	$	598	$	606
Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,286		1,274		1,122		1,209		1,416		5,021
Pulpwood	1,000 Tons		1,494		1,526		1,448		1,674		1,798		6,446
Total Harvest			2,780		2,800		2,570		2,883		3,214		11,467
Northern Resources
Sawlog	1,000 Tons		506		627		484		537		486		2,134
Pulpwood	1,000 Tons		478		527		348		517		431		1,823
Total Harvest			984		1,154		832		1,054		917		3,957
Lumber	MBF		29,250		28,791		30,813		29,305		27,181		116,090
Plywood	MSF		44,156		45,104		47,002		44,223		36,387		172,716
Fiberboard	MSF		40,690		35,347		50,010		39,394		32,266		157,017

(1) Represents prices at mill level.

Plum Creek Timber Company, Inc.

Land Sale Statistics

(Unaudited)

	2011		2010
	1st Qtr (1)		1st Qtr (2)		2nd Qtr		3rd Qtr		4th Qtr (3)		YTD
Acres Sold
Small Non-strategic		2,560		29,640		1,950		10,270		21,375		63,235
Large Non-strategic		30,295		24,310		—		—		—		24,310
Conservation		335		35,120		215		2,870		77,900		116,105
HBU/Recreation		7,795		9,080		18,175		9,870		16,140		53,265
Development Properties		—		730		60		—		55		845
Conservation Easements		n/a		n/a		n/a		n/a		n/a		n/a
		40,985		98,880		20,400		23,010		115,470		257,760
Price per Acre
Small Non-strategic	$	1,015	$	885	$	1,120	$	1,025	$	1,045	$	970
Large Non-strategic	$	1,405	$	1,320		—		—		—	$	1,320
Conservation	$	1,685	$	545	$	1,450	$	1,865	$	1,245	$	1,050
HBU/Recreation	$	2,100	$	2,125	$	2,210	$	2,335	$	1,950	$	2,140
Development Properties		—	$	3,050	$	5,985		—	$	5,535	$	3,415
Conservation Easements		—		—		—		—	$	455	$	455
Revenue, ($ millions)
Small Non-strategic	$	3	$	26	$	2	$	11	$	22	$	61
Large Non-strategic	$	43	$	32		—		—		—	$	32
Conservation	$	1	$	19		—	$	5	$	97	$	122
HBU/Recreation	$	16	$	19	$	40	$	23	$	31	$	114
Development Properties		—	$	2		—		—		—	$	3
Conservation Easements		—		—		—		—	$	4	$	4
	$	62	$	99	$	43	$	39	$	155	$	336
Basis of Real Estate Sold(4)	$	19	$	32	$	11	$	14	$	75	$	132

(1) During the first quarter of 2011 the company sold 30,300 acres of Large Non-strategic lands located in Mississippi for $42.6 million.

(2) 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.

(3) 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.

(4) Includes $13 million in the first quarter of 2011 from a 30,300 acre Large Non-strategic sale in Mississippi, $52 million in the fourth quarter of 2010 from a 69,600 acre conservation sale in Montana, and $7 million in the first quarter of 2010 for a 24,000 acre Large Non-strategic sale in Louisiana.

PLUM CREEK TIMBER COMPANY, INC.

DEBT MATURITIES SCHEDULE

March 31, 2011

(UNAUDITED)

	Borrowings
	Principal		Weighted Avg. Interest Rate
Quarterly Maturities through 2012:
4th Qtr 2011	$	46		7.712	%  (1)
2nd Qtr 2012	$	350		—	(2)
4th Qtr 2012	$	3		8.050	%
Annual Maturities through 2014:
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) Represents the company’s term credit agreement. As of March 31, 2011, the interest rate is based on LIBOR plus 0.45%.

(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.