IN BRIEF

TOKYO

Sales in China, Africa boost Toyota profits

Toyota's profit for its third quarter rose 7.5 percent from the previous year as booming sales in China, Africa and South America offset declining U.S. sales and a stronger yen.

The maker of Prius gasoline-electric hybrids and Corolla subcompacts kept its sales forecast for the fiscal year through March unchanged at 8.93 million vehicles, up 4.8 percent from the previous fiscal year, saying that market growth in new markets will make up for weaker-than-expected vehicle sales in the U.S., Europe and Japan.

Toyota Motor Corp. also left its profit projection at 1.7 trillion yen ($15.91 billion) for the fiscal year on 25.5 trillion yen ($238.61 billion) in sales.

Group profit for its third quarter ended Dec. 31 rose to 458.6 billion yen ($4.29 billion), a record for a fiscal third quarter. Toyota had earned 426.7 billion yen the same period the previous year.

Quarterly sales rose 9.2 percent to 6.710 trillion yen ($62.79 billion).

Merrill mortgage unit triples service staff

Merrill Lynch & Co.'s Home Loan Services, a servicer of mortgages underlying bonds created by the company's subprime-lending business, has tripled its staff to help borrowers avoid foreclosures.

"It's the right thing to do" for the company, owners of its securities and homeowners, Nanette Stevens, a managing director, said Tuesday during an industry conference in Las Vegas.

The number of "loss mitigation" employees at the Pittsburgh-based unit has risen to 156 from 49 at the end of 2006, Stevens said in an interview. New York-based Merrill Lynch, which reported a record loss last quarter amid mortgage-asset writedowns, bought the unit and lender First Franklin Financial Corp. for $1.3 billion from National City Corp. in 2006.

SAN FRANCISCO

Memory expanded for Apple iPhone, iPod

Apple said Tuesday it has expanded its iPhone and iPod touch product lines by adding new devices that double the memory of the previous models.

Apple unveiled a new 16-gigabyte iPhone that will cost $499 and will join the company's current 8GB model that remains with a $399 price tag. The new iPod touch will come with 32GB of memory and cost $499.

Apple already has two models of the iPod touch: a 16GB device for $399 and an 8GB version for $299.

The devices will also come with new applications for online maps, clips from Web sites and the new iTunes movie rentals that allow the devices to rent and download films from the iTunes store.

NEW YORK

Service sector data push oil prices lower

Oil futures fell Tuesday, dropping below $89 after financial markets were surprised by data that showed the traditionally strong service sector shrank sharply last month, raising the prospect that demand for energy will weaken along with the economy.

Light, sweet crude for March delivery fell $1.61 to settle at $88.41 a barrel on the New York Mercantile Exchange.

WASHINGTON

Time Warner boss to outline reshuffle plans

Time Warner's new Chief Executive Jeffrey Bewkes is preparing to use his first address to investors today to outline plans for shaking up the world's largest media company, starting with a move to sell or spin off Time Warner Cable to help reverse the corporation's skidding stock price.

Bewkes is also likely to signal plans to break up AOL in the coming year, as Time Warner holds onto AOL's growing online advertising properties and sells its struggling Internet service provider business, said a source close to the company.

Girl Scout cookie sales may move to desktop

Getting your Thin Mints may soon be as easy as clicking your mouse.

ABCNews.com reported Tuesday that the Girl Scouts of Central Texas are testing an online locator to alert cookie buyers. Customers log onto the council's Web site, type in a ZIP code and find when and where to buy cookies.

ABC said the locator is being tested in 16 councils across the country, including in parts of Nevada, California, Pennsylvania and New Jersey. The feature could go national next year if the trial succeeds, ABC reported.

NEW YORK

Treasury prices rally on recession fears

Treasury prices rallied on recession fears Tuesday after a survey showed the services sector shrank last month.

The benchmark 10-year Treasury note rose 0.56 points to 105.5 with a yield of 3.59 percent, down from 3.64 percent in late trading Monday.