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PLUM CREEK TIMBER CO., L.P., ANNOUNCES A 93 PERCENT INCREASE IN SECOND QUARTER EARNINGS

 SEATTLE, July 20 /PRNewswire/ -- Plum Creek Timber Co., L.P., (NYSE: PCL) stated that higher prices for all its products have enabled the company to post significantly higher earnings for the second quarter of 1993, as well as the first half of the year. Earnings for the second quarter of 1993 totaled $28.2 million, or $1.73 per unit on revenues of $117.1 million compared to $14.6 million, or 92 cents per unit on revenues of $108.6 million for the second quarter of 1992.
 Earnings for the first six months of 1993 were $53.8 million, or $3.35 per unit on revenues of $233.5 million compared to earnings of $23.7 million or $1.50 per unit, on revenues of $207.9 million for the six months ended June 30, 1992.
 The company stated that its quarterly cash distribution would continue to be $1.00 per unit. The distribution was increased from 90 cents to $1.00 per unit for the first quarter of 1993, representing the fourth such increase since the company went public in June 1989. The quarterly distribution will be paid on Aug. 27, 1993 to unitholders of record as of Aug. 17, 1993.
 Commenting on the company's financial performance, David D. Leland, chairman, president and chief executive officer said, "Higher prices in all of our product lines have contributed significantly to our continued strong financial performance for the quarter and the first half of the year despite the sluggish economy and the decline seen in lumber prices from record first quarter levels. The company's lumber and plywood prices for the second quarter of 1993 have increased 20 percent and 23 percent, respectively, as compared to the year earlier period. With continuing pressure on log supplies from public forests, we continue to see upward pressure on log prices. Export and domestic log prices were up 67 percent and 47 percent, respectively, as compared to the same period in 1992. Domestic log volumes were down compared to the year earlier period as a result of the timing of spring breakup in the Rockies along with planned harvest reductions. Pricing for logs in both the domestic and export markets should remain strong as a result of the logging restrictions and curtailments in the Pacific Northwest caused in part by legal challenges to federal timber sales. We do not anticipate that the current forest management plan proposed by President Clinton is likely to provide any notable relief to the timber supply situation."
 Leland also stated that although nationwide demand for wood products in general, and lumber in particular, is not likely to meet levels anticipated earlier in the year, the company should still continue to have strong earnings for the balance of the year.
 Plum Creek is one of the largest private forestland owners in the Pacific Northwest.
 PLUM CREEK TIMBER CO., L.P.
 Combined Statement of Income
 (in thousands, except per unit; unaudited)
 Second Quarter
 1993 1992
 Revenues $ 117,077 $ 108,644
 Costs and expenses
 Cost of goods sold 71,659 76,579
 Selling, general and administrative 8,204 8,526
 Total costs and expenses 79,863 85,105
 Operating income 37,214 23,539
 Interest expense (8,798) (8,993)
 Interest income 512 662
 Other income (expense) - net 12 (62)
 Income before income taxes 28,940 15,146
 Provision for income taxes 773 522
 Net income 28,167 14,624
 General partner interest 2,501 831
 Net income allocable to unitholders $ 25,666 $ 13,793
 Net income per unit $ 1.73 $ 0.92
 PLUM CREEK TIMBER CO., L.P.
 Combined Statement of Income
 (in thousands, except per unit; unaudited)
 Six Months
 1993 1992
 Revenues $ 233,499 $ 207,856
 Costs and expenses
 Cost of goods sold 144,290 149,343
 Selling, general and administrative 17,256 17,187
 Total costs and expenses 161,546 166,530
 Operating income 71,953 41,326
 Interest expense (17,657) (18,032)
 Interest income 1,229 1,205
 Other expense - net (73) (171)
 Income before income taxes 55,452 24,328
 Provision for income taxes 1,687 593
 Net income 53,765 23,735
 General partner interest 4,211 1,551
 Net income allocable to unitholders $ 49,554 $ 22,184
 Net income per unit $ 3.35 $ 1.50
 -0- 7/20/93
 /CONTACT: Shelley Monfor of Plum Creek Timber, 206-467-3613/
 (PCL)


CO: Plum Creek Timber Co., L.P. ST: Washington IN: PAP SU: ERN

LM-SB -- SE001 -- 6823 07/20/93 12:37 EDT
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Date:Jul 20, 1993
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