UPDATE 1-Timber co Plum Creek's fourth-quarter profit drops

* Q4 earnings per share $0.57 cents vs $0.68 cents

* Revenue falls to $461 million from $504 million

* Shares close up 19 cents at $30.96

NEW YORK, Feb 2 (Reuters) - Plum Creek Timber Co (PCL.N) said on Monday its fourth-quarter profit fell as income was hit by a decline in residential construction and weak prices and demand for timber.

Net earnings were $95 million, or 57 cents per share, compared with a $118 million, or 68 cents per share in the same quarter of 2007, the Seattle-based company said.

Revenue fell to $461 million from $504 million a year earlier.

Analysts, on average, had expected earnings of 46 cents per share and revenue of $481.92 million, according to Reuters Estimates.

Plum Creek said earnings for the fourth quarter included an $11 million, or 7 cents per share, after-tax gain from the early retirement of debt, and $3 million, or 2 cents per share, of severance costs from plans to reduce manufacturing production.

The fourth quarter of 2007 included an after-tax gain of $43 million, or 25 cents per share, from the sale of nearly 100,000 acres of large, non-strategic timberlands for about $70 million. (Reporting by Steve James)