Jul 30, 2012. /Lesprom Network/. Plum Creek Timber Company, Inc. announced 2Q earnings of $36 million, or $0.22 per diluted share, on revenues of $294 million. Earnings for the 2Q 2011 were $44 million, or $0.27 per diluted share, on revenues of $284 million, as the company said in the press release received by Lesprom Network. Earnings for the first six months of 2012 were $65 million, or $0.40 per diluted share, on revenues of $631 million. Adjusted EBITDA, a non-GAAP measure of operating performance, for the first six months of 2012 was $234 million, up from $209 million in the same period of 2011. The company ended the quarter with $260 million in cash and cash equivalents. The Northern Resources segment reported operating income of $4 million for the quarter, up $1 million from the 2Q2011. As expected, good harvesting conditions throughout much of the quarter allowed the company to bring more timber to market than the previous year. The sawlog harvest increased approximately 160,000 tons, or 34 percent, and the pulpwood harvest increased approximately 70,000 tons, or 29%. Sawlog prices of $71 per ton approximated 2Q 2011 levels. Average pulpwood prices of $42 per ton were about $2 per ton higher than the same period of 2011. Operating income in the Southern Resources segment was $22 million, an increase of $7 million from the $15 million reported during the 2Q 2011. Both sawlog and pulpwood prices were slightly higher (approximately $1 per ton) than the levels reported for the 2Q 2011. As planned, harvest volumes in 2012 were higher than those in the same period of 2011. The company’s harvest continues to emphasize pulpwood and smaller diameter sawlogs to maximize long-term value of the forest. Pulpwood volumes were up 341,000 tons, or 21%, higher compared to the 2Q 2011. The sawlog harvest was 406,000 tons, or 36%, higher, than the same period of 2011. The Manufacturing segment reported $9 million of operating income for the 2Q, compared to the $5 million operating income reported for the 2Q 2011. Profitability in each of the product lines improved on higher prices and sales volumes. Sales volumes for plywood and medium density fiberboard (MDF) increased 15% and 22% respectively. Lumber sales volume increased 2% and lumber prices increased approximately 4%. Plywood prices increased 7% and MDF prices improved 2%. “Earnings in our timber and manufacturing businesses improved over the past year,” said Rick Holley, Plum Creek’s President and CEO. “Improving demand for our lumber and panels drove a $4 million improvement in our Manufacturing segment’s 2Q profit compared to 2011. In our resources segments, higher harvest volumes, supplemented by volume from our recent timber deed acquisition, helped drive $8 million of profit growth and a $15 million increase in adjusted EBITDA. In our Real Estate segment, last year’s 2Q sales were anchored by a couple of large conservation transactions making for a challenging comparison. However, our Real Estate segment revenues for this 2Q of $47 million were a bit higher than we initially anticipated. We continue to be on track to grow our adjusted EBITDA by approximately $50 million this year.” The company expects its full-year harvest to approximate 17.5 million tons, including approximately 700,000 tons from recent timber deed acquisition. This is at the high end of the company’s original harvest projection of 16.5 to 17.5 million tons for 2012. The increase is comprised of pulpwood, primarily the result of increased yields from the thinning of young timber stands. During the 3Q, harvests in the Northern Resources segment are expected to increase seasonally from their second quarter low while the Southern harvest is expected to be similar to the second quarter’s level. 3Q Real Estate segment sales are expected to be between $90 million and $100 million. The company expects full-year Real Estate segment sales to be between $275 million and $325 million. Manufacturing results are expected to decline slightly from the second quarter’s level. Plum Creek is the largest and most geographically diverse private landowner in the nation with approximately 6.5 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest.