THE ECONOMY

Profits after taxes at major U.S. manufacturers fell during the fourth quarter of 1998 to the lowest level in three years, the Commerce Department said. After-tax profits at major manufacturers averaged 5.1 cents per dollar of sales in the quarter, from 6.2 cents in the previous quarter and 6.0 cents in the year-earlier period. After-tax profits at major retailers with assets of $50 million or more averaged 3 cents per dollar of sales during the fourth quarter, Commerce also said. That’s up from the third quarter’s 1.9 cents and matched a 3 cents average during the fourth quarter of 1997.