Apr 28, 2010. /Lesprom Network/. Plum Creek Timber Company, Inc. announced 1Q earnings of $87 million on revenues of $317 million. Results for the 1Q 2010 include an $11 million after-tax gain on the sale of certain natural gas assets. As a result, income from continuing operations for the 1Q was $76 million. Earnings for the 1Q 2009 were $157 million on revenues of $470 million. Results for the 1Q 2009 include the effect of a $7 million after-tax ($12 million pre-tax) impairment charge related to the company's lumber manufacturing business, which reduced net income by $0.04 per diluted share; and approximately $2 million after-tax ($3 million pre-tax) of severance costs, which reduced net income by $0.01 per share. The 2009 first quarter's results benefited from the reversal of prior period tax expenses and a reduction in deferred tax liability. These changes resulted in a one-time tax benefit of approximately $8 million. Cash provided by operating activities for the 1Q totaled $129 million. The company ended the quarter with $304 million in cash and cash equivalents. Sales fell 33% to $317 million. "Our 1Q results exceeded our expectations in each of our business lines," said Rick Holley, President and CEO. "Each segment reported improved performance relative to the same period of 2009 with the exception of our real estate segment. The 1Q 2009 real estate results were particularly strong as the result of a $250 million conservation sale. "We are encouraged by improving prices for lumber, structural panels, and pulp and paper products. This should lead to improving demand and prices for our timber as the economic recovery takes hold. Interest and activity in rural land markets have improved from the low levels we experienced in 2009; and the right-sizing of our manufacturing businesses has returned the segment to profitability. In addition, our debt reduction and cost management efforts have reduced interest costs and overhead expenses. We remain conservatively positioned as the pace and timing of the recovery remains uncertain; however, we expect each of our businesses to benefit as markets improve." Plum Creek is the largest and most geographically diverse private landowner in the nation with approximately 7 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest.