UPDATE 1-Watson posts fourth-quarter profit above estimates

(Adds details from results, outlook)

NEW YORK Feb 20 (Reuters) - Watson Pharmaceuticals Inc (WPI.N) on Wednesday posted a better-than-expected fourth-quarter profit, helped by its brand and generic-drug segments, and projected 2008 results in-line with Wall Street's estimates.

The company reported net income of $38.4 million, or 34 cents per share. Watson posted a net loss of $489 million, or $4.80 per share, in the year-ago period, when it took large charges related to its acquisition of Andrx Corp.

Excluding items, earnings were 35 cents per share, 4 cents ahead of the average expectation of analysts, according to Reuters Estimates.

Revenue at the Corona, California-based company rose 1 percent to $627.3 million, about $17 million ahead of estimates.

Overall revenue in its generic segment fell, but profit in the unit rose as the segment's costs declined and sales of its higher margin drugs improved. Watson's newer generic launches include versions of the popular antidepressant Wellbutrin XL, the fentanyl pain patch and an the oral contraceptive Estrostep Fe.

Profit and revenue also rose in Watson's smaller brand-name drug segment.

For 2008, Watson forecast earnings excluding items in a range of $1.90 per share to $2 per share. Analysts expect $1.94.

Watson expects to incur pre-tax costs of about $34 million this year tied to the planned closing of its Carmel, New York manufacturing facilities. (Reporting by Lewis Krauskopf; editing by John Wallace and Derek Caney)