SEATTLE--(BUSINESS WIRE)--April 1, 2008--Plum Creek TimberCompany, Inc. (NYSE:PCL), today updated the outlook for its resultsfor the first quarter and full year of 2008.
The company initially expected real estate segment revenues to bebetween $75 and $85 million during the first quarter, which includedthe sale of two properties with a combined sales price of $35 million.These sales did not close, and real estate segment revenues are nowexpected to be approximately $50 million during the first quarter. Asa result, the company expects first quarter earnings to be between$0.18 and $0.22 per share. As with prior years, the company expectsreal estate sales to be seasonally weighted toward the second half ofthe year. At this time the company continues to expect real estatesegment revenues for the full year to be between $320 and $340million.
With residential construction activity matching levels not seensince the early 1980s, the company currently expects sawlog demand toremain weak in many markets, offset modestly by continued strongpulpwood demand and pricing. As a result, the company now expects 2008earnings to be between $1.05 and $1.30 per share, or $0.10 per sharelower than the expectations previously provided in January, based onthe company's current outlook and assessment of rural land and timbermarkets.
"Plum Creek's disciplined execution of our strategies hasdelivered superior returns for shareholders over the long term and isespecially important during times of cyclical weakness in the economy.We continue to manage Plum Creek's assets for long-term shareholdervalue creation," said Rick Holley, president and chief executiveofficer.
"In our day-to-day operational decisions, we focus on serving ourbest markets, emphasizing pulpwood harvests and moderating our sawlogsales, which allows a portion of our most valuable timber to continueto grow," Holley continued. "Our real estate segment is wellpositioned, offering a wide variety of lands to a broad spectrum ofbuyers. We're also continuing our strategic efforts to drive long-termcash flow growth through operational improvements in our timberbusiness as well as supplying raw material to the emerging bioenergymarkets."
"These are assets with lasting value, and we are confident ourapproach to today's markets will maximize their long-term value whileproviding our shareholders with an attractive and sustainabledividend," Holley concluded.
The company expects to release its first quarter 2008 earningsafter the close of market on Monday, April 28, 2008, followed by itsregular investment community conference call at 5 p.m. EDT the sameday.
Plum Creek is the largest and most geographically diverse privatelandowner in the nation, with approximately 8 million acres oftimberlands in major timber producing regions of the United States and10 wood products manufacturing facilities in the Northwest.
This press release contains forward-looking statements within themeaning of the Private Litigation Reform Act of 1995, as amended. Someof these forward-looking statements can be identified by the use offorward-looking words such as "believes," "expects," "may," "will,""should," "seek," "approximately," "intends," "plans," "estimates," or"anticipates," or the negative of those words or other comparableterminology. The accuracy of such statements is subject to a number ofrisks, uncertainties and assumptions, including, but not limited to,the cyclical nature of the forest products industry, our ability toharvest our timber, our ability to execute our acquisition strategy,the market for, and our ability to sell or exchange, non-strategictimberlands and timberland properties that have higher and betteruses, and various regulatory constraints. These and other risks,uncertainties and assumptions are detailed from time to time in ourfilings with the Securities and Exchange Commission under theSecurities Exchange Act of 1934, as amended, and the Securities Act of1933, as amended. It is likely that if one or more of the risksmaterializes, or if one or more assumptions prove to be incorrect, thecurrent expectations of Plum Creek and its management will not berealized. Forward-looking statements are not guarantees ofperformance, and speak only as of the date made, and neither PlumCreek nor its management undertakes any obligation to update or reviseany forward-looking statements.
Plum Creek Timber Company, Inc.
Investors: John Hobbs, 1-800-858-5347
Media: Robin Keegan, 1-888-467-3751
SOURCE: Plum Creek Timber Company, Inc.