TOKYO — Toyota expects that flat sales in North America — where higher gas prices, a housing slump and a slowing economy have tempered consumer spending — will slow growth in its overall sales and profits this year after double-digit gains last year.

Besides the anticipated sales slowdown, Toyota officials said Wednesday that investments in new plants to boost production and research costs to develop new models will depress its profit expansion for the fiscal year through March 2008.

Japan's biggest automaker has also been spending on quality controls, after suffering a surge in recalls that analysts say may be a byproduct of the automaker's recent aggressive growth efforts.

It expects a 0.4 percent rise in profit this year, its smallest improvement since its profit slipped in the fiscal year ending March 2002, while sales grow 4.4 percent.

By contrast, Toyota Motor Corp.'s profit rose 20 percent on a 14 percent rise in sales in the fiscal year ended this past March.

NEWS CORP PROFIT JUMPS ON GOOD RATINGS, SALES

NEW YORK — News Corp., which disclosed a surprise bid for Dow Jones & Co. last week, reported 6.2 percent higher profit Wednesday on gains at its movie studio and cable networks, including Fox News Channel.

Higher earnings from home video sales of "Borat" and the theatrical release of "Night at the Museum" and other movies helped drive News Corp.'s profit to $871 million in its third fiscal quarter ended March 31, up from $820 million in the same period a year ago. Revenue rose 21.5 percent to $7.5 billion.

The earnings were equivalent to 27 cents per share, in line with the estimate of analysts surveyed by Thomson Financial, and up from 26 cents per share a year ago. News Corp.'s shares fell 45 cents to $21.30.

On a conference call with analysts and reporters, News Corp. Chief Executive Rupert Murdoch defended his unsolicited offer for Dow Jones, which has run into opposition from the company's controlling shareholders, the Bancroft family, and Dow Jones employees.

OIL PRICES FALL AMID REBOUND IN GASOLINE STOCKS

NEW YORK — Oil prices fell Wednesday on a U.S. inventories report showing the first rebound for gasoline stocks in three months.

The increase could relieve pressure on U.S. retail gasoline prices, which have risen to near-record levels ahead of the summer driving season. Inventories remain well below levels a year ago, however, and persistent problems at the nation's refineries and escalating violence in Nigeria's oil region could drive prices still higher.

Marking the first increase in 13 consecutive weeks, gasoline stocks rose an average of 400,000 barrels last week to 193.5 million barrels, slightly ahead of analyst expectations.

Light, sweet crude for June delivery fell 71 cents to settle at $61.55 a barrel on the New York Mercantile Exchange. June Brent crude fell 34 cents to $65.20 a barrel on London's ICE Futures exchange.

Gasoline futures rose 2.64 cents to settle at $2.2309 a gallon.

NORTHWEST CLOSER TO EMERGING FROM BANKRUPTCY

MINNEAPOLIS — Northwest Airlines said its creditors overwhelmingly approved its bankruptcy reorganization plan, another key step on its way toward emerging from bankruptcy protection next month.

An unofficial vote tally shows that almost 97 percent of creditors who voted approved the plan, the airline said on Wednesday. Final results will be filed in bankruptcy court in New York later this week.

A confirmation hearing on Northwest's reorganization plan is set to begin May 16, and Northwest has said it expects to emerge from bankruptcy in June. It has been operating under bankruptcy protection since Sept. 14, 2005.

Even though creditors approved the plan, several people have objected to it, including the Owl Creek hedge fund, which wants to block the claims given to unions in exchange for pay cuts and work rule changes negotiated during Northwest's reorganization.

HOMEBUILDERS CONTINUE TO REPORT SLUMPING SALES

PHILADELPHIA — Hopes of an imminent housing recovery are dimming as the nation's largest homebuilders continue to report slumping sales and profits.

Toll Brothers Inc., the nation's largest builder of luxury homes, on Wednesday warned that it won't meet prior earnings projections while homebuilders Hovnanian Enterprises Inc., Pulte Homes Inc. and D.R. Horton Inc. have reported similar malaise.

Toll placed part of the blame on stricter lending requirements that have been tough on buyers who want to upgrade but can't sell their current residences. Analysts said problems in subprime mortgages earlier this year have dampened a recovery.

Problems in subprime mortgages, which target borrowers with poor credit histories, have choked early indications of a recovery in the housing market.

TXU SWINGS TO A LOSS IN FIRST QUARTER

DALLAS — TXU Corp. said Wednesday it swung to a loss in the first quarter after revenue plunged 28 percent and the electric utility took a big charge to cancel coal-fired power plants, a condition of the company's pending $32 billion sale to private owners.

The Dallas company, the largest power producer in Texas, said losses after paying preferred dividends totaled $497 million, or $1.09 per share, compared with a profit of $576 million, or $1.22 per share, a year earlier.

TXU had already warned investors that it would take a huge charge against earnings to suspend work on eight of 11 coal-fired plants. Excluding that charge and a large write-down for its fuel-hedging program, the company said it would have earned $444 million, or 96 cents per share.

Analysts had expected a profit of $1.11 per share after special charges, according to a Thomson Financial survey. A year ago, the company's operating profit was $529 million, or $1.12 per share.

DirecTV MAKES GAINS AS MORE SUBSCRIBERS SIGN ON

LOS ANGELES — DirecTV Group Inc., the nation's largest satellite TV operator, said Wednesday its first-quarter profit rose 43 percent from a year ago as more subscribers signed on for high-profit offerings and fewer canceled their service.

Still, shares slipped as the earnings missed Wall Street expectations and analysts expressed concerns about increased competition from telecommunications companies such as Verizon Communications Inc.

Net income climbed to $336.4 million, or 27 cents per share, in the three months ended March 31 from $235.2 million, or 17 cents per share, a year ago.

Revenue climbed 15 percent to $3.91 billion from $3.39 billion last year.