SEATTLE--(BUSINESS WIRE)--Oct. 4, 2007--Plum Creek Timber Company,Inc. (NYSE:PCL) today reported the company will record a $4 millionnon-cash fire loss during the third quarter. An active fire season inwestern Montana damaged approximately 41,000 acres, or one-halfpercent, of the company's timberlands. The extreme fire risk inwestern Montana this season led the company to halt timber operationsin the region during August. As a result, sawlog harvest levels werenearly 150,000 tons lower than expected in the company's NorthernResource segment. Salvage operations have begun and the companyexpects a portion of the standing timber on the land will be salvagedin the coming months.
The company also reported that several land sales originallyscheduled to close in the third quarter are now scheduled to close inthe fourth quarter. As a result of this timing difference, the companyexpects to report Real Estate segment sales of approximately $94million during the third quarter. The company originally expectedthese third-quarter sales to be between $110 and $120 million. Thecompany expects to report strong Real Estate segment revenues for2007, on the low end of its estimated range of $330 and $350 million.
"We manage Plum Creek for sustainable, long-term value creation.We continue to focus on this objective, as we always have, whendetermining our day-to-day harvest plans," said Rick Holley, presidentand CEO. "Sawlog markets continue to bounce along the bottom, and havebeen particularly soft in certain markets in the southeastern UnitedStates over the past year. With the prospect of continuing weak lumberdemand in the fourth quarter, we plan to further reduce our sawlogharvest by approximately 200,000 tons in these southern markets. Webelieve this harvest deferral will allow us to capture better pricingfor these trees when markets improve. In the meantime, these treescontinue to grow, increasing the value of the company.
"As a result of our fire loss, the associated reduction inthird-quarter harvest, and our plans for future harvests, we currentlyexpect our full-year earnings to be between $1.33 and $1.38 per share.While our plans reduce near-term earnings from our timber segments, webelieve they enhance the long-term value of the company."
The company expects to report third quarter earnings between $0.32and $0.37 per share including the $0.02 per share fire loss expenseafter the market closes on Oct. 22.
Plum Creek is the largest and most geographically diverse privatelandowner in the nation with 8.2 million acres of timberlands in majortimber producing regions of the United States and 10 wood productsmanufacturing 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, 1-800-467-3751
SOURCE: Plum Creek Timber Company, Inc.