OMAHA, Neb. (AP) -- Berkshire Hathaway Inc. said Friday its fourth-quarter profit fell almost 18 percent as its companies linked to construction were hurt by nationwide housing woes, and the company generated smaller insurance underwriting profits and investment gains.

But the full-year picture CEO Warren Buffett described in his annual letter to shareholders appeared much brighter. The company's net income soared 20 percent as it took on more derivative risk.

Berkshire reported earning $2.95 billion, or $1,904 per share, in the quarter. That's down from $3.58 billion, or $2,323 per share, in the year earlier period.

For 2007, Berkshire earned $13.2 billion, or $8,548 per share, up 20 percent from $11.02 billion, or $7,144 per share, the prior year.

On average, the four analysts surveyed by Thomson Financial have been expecting fourth-quarter earnings per share of $1,606 and annual earnings per share of $6,321.

Berkshire generated revenue of $118.2 billion in 2007, up from $98.5 billion in the previous year.

Buffett said Berkshire gained $12.3 billion in net worth during 2007, which represents an 11 percent increase in the per-share book value of the company. That beat the 5.5 percent gain in the S&P 500's

BERLIN (AP) -- The dollar kept spiraling down Friday, hitting another low against the euro and dropping to a three-year record against the yen, as worries about the U.S. economy depress the currency and raise thorny issues in Europe about how to cope with the growing gap.

The euro flew past its previous high to hit $1.5238, before subsiding to $1.5194 late in New York. The euro topped $1.50 this week for the first time since being introduced in 1999 at $1.17, then surged above $1.51 after markets took comments from Fed Chairman Ben Bernanke as a sign that yet more U.S. rate cuts are on the way.

"The dollar looks set to finish the month with yet more downside pressure being heaped upon it," said Gary Thomson of CMC Markets in London.

The dollar also slumped to 103.96 Japanese yen on Friday from 105.36 yen in New York the night before. The dollar has not been below 104 yen since March 2005.

The dollar also fell to 1.0433 Swiss francs from 1.0503 Swiss francs, hitting a record low of 1.0410 francs, according to Dow Jones' Interbank foreign exchange rates.

The two "carry-trade currencies" tend to trade inversely to the market. The Dow Jones industrial average dropped more than 300 points in late trading in New York.

Carry trader borrow currencies from countries with low interest rates and investing the funds in higher