Toyota reported a surprise quarterly profit and cut its annual loss forecast by more than half as sales and cost-cutting beat its forecasts, putting it on track to follow Japanese rivals into the black next year.

Toyota, the world's biggest car-maker by sales, wrapped up an earnings season dominated by rosier projections from Japanese auto-makers as they squeeze out savings and boost manufacturing efficiencies.

The industry has also gotten a sales boost from government-backed incentives from Germany to China and Japan aimed at igniting demand. - (Reuters)