Apr 30, 2012. /Lesprom Network/. Plum Creek Timber Company, Inc. announced 1Q earnings of $29 million, on revenues of $337 million. Earnings for the 1Q 2011 were $38 million, on revenues of $275 million. Earnings declined due to lower reported income from the real estate segment, although revenues and cash generated by the segment increased, as the company said in a press release received by Lesprom Network. Adjusted EBITDA, a non-GAAP measure of operating performance, for the 1Q 2012 was $139 million, up from $100 million in the 1Q 2011. The company ended the quarter with $273 million in cash and cash equivalents. A reconciliation of adjusted EBITDA to net income and cash flow from operations is provided as an attachment to this release. “Plum Creek performed well in the 1Q. We took advantage of attractive pulpwood markets and seamlessly integrated the harvest from our recently acquired timber deed in the Gulf South region. However, results didn’t meet our initial expectations due to timing differences in our real estate sales,” said Rick Holley, President and CEO. “Our 1Q real estate sales, while higher than the 1Q of last year, were below our initial expectations. Performance in our timber and manufacturing segments was similar to the 1Q 2011, and we remain on track to meet our financial goals for the year.” The Northern Resources segment reported operating profit of $6 million during the 1Q, similar to the $7 million profit reported during the 1Q 2011. Timber prices were generally flat to up in most regions when compared to the same period of 2011. Average sawlog prices declined approximately $2 per ton, or 3%, due to the geographic mix of sales. Pulpwood prices were approximately $2 per ton, or 6%, higher than those of the 1Q 2011 due to strong hardwood pulpwood markets in the Northeast. As planned, harvest volumes were 124,000 tons, or 13%, higher than the same period of 2011 while higher logging and hauling costs tempered margins. Operating profit in the Southern Resources segment was $21 million, up $2 million from the 1Q 2011 due to higher harvest volumes. The total harvest increased approximately 400,000 tons, or 14%, from 1Q 2011. Pulpwood accounted for 350,000 tons of the higher harvest volume due to good demand from customers throughout the region. Pulpwood prices were similar to those experienced during the same period of 2011. Sawlog prices were mixed with smaller diameter sawlog prices steady in most regions and larger diameter sawlog prices lower. As a result, average sawlog prices were approximately 2% lower than the 1Q 2011. The Manufacturing segment reported operating income of $4 million, unchanged from the 1Q 2011. Prices for lumber and medium density fiberboard (MDF) were little changed when compared to the 1Q 2011. Plywood prices were 4% higher with sales volumes up 21% from the 1Q 2011. Sales volumes in lumber and MDF increased as well, up 3% and 10% respectively. Plum Creek is the largest and most geographically diverse private landowner in the nation with approximately 6.6 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest.