Jul 27, 2005. /Lesprom Network/. Plum Creek Timber Company, Inc. announced second quarter earnings of $69 million, or $0.37 per diluted share, on revenues of $358 million. Earnings were up 21% compared to the same period of 2004. Earnings for the second quarter of 2004 were $57 million, or $0.31 per diluted share, on revenues of $341 million. Results for the second quarter of 2004 included a pre-tax gain of $5 million ($3 million, or $0.02 per diluted share, after-tax gain) from the sale of a working interest in a coalbed methane project and $2 million of operating income from the sale of large, non-strategic timberlands. Earnings for the first six months of 2005 were $191 million, or $1.03 per diluted share, on revenues of $758 million. Results for the first six months of 2005 include a $20 million after-tax gain on the first quarter sale of the company's remaining coal assets. As a result, income from continuing operations for the first six months of 2005 was $171 million, or $0.93 per fully diluted share. Earnings for the first six months of 2004 were $212 million, or $1.15 per diluted share, on revenues of $838 million. Results for the first six months of 2004 included $69 million of operating income from the $133 million sale of large, non-strategic timberlands as well as the gain from the sale of the coalbed methane working interest mentioned above. Cash provided by operating activities in the second quarter of 2005 totaled $131 million. Cash provided by operating activities in the same period of 2004 was $148 million including approximately $15 million from the sale of large, non-strategic timberlands. Cash provided by operating activities in the first six months of 2005 totaled $228 million. Cash provided by operating activities in the first six months of 2004 totaled $391 million and included approximately $129 million from the sale of large, non-strategic timberlands. The company ended the second quarter of 2005 with $384 million in cash and cash equivalents. "Our second quarter results exceeded our expectations as demand for timber remained strong throughout the country," said Rick Holley, President and Chief Executive Officer. "In the first six months, operating profit from our timber segments increased 18% compared to the same period of 2004. At the same time, we continue to experience strong interest in and capture excellent values for our non-core timberlands. This interest comes from a variety of buyers who value these lands for their recreation, conservation or other attributes. We're pleased with our performance so far this year and are confident that strong markets and our focused business approach position us for an excellent second half of 2005." The company completed the acquisition of approximately 35,000 acres of highly productive northern Florida timberland for approximately $50 million. The company funded the purchase with a short-term note. This transaction was the first phase of a 56,000-acre timberland purchase from Greif, Inc. valued at approximately $90 million. Plum Creek expects to complete the acquisition of the remaining 21,000 acres over the next three quarters. Earlier in July, the company acquired approximately 18,000 acres of high-quality plantation timberlands in southwest Arkansas for approximately $25 million. This property complements the current ownership in an attractive timber market. This acquisition was funded with 1031 like-kind exchange funds. Plum Creek is one of the largest private timberland owners in the nation, with approximately 8 million acres of timberland in major timber producing regions of the United States. The company also produces lumber, plywood and medium density fiberboard (MDF) in 10 wood products manufacturing facilities in the Northwest. Plum Creek employs more than 2,000 people across 19 states.