Toyota saw quarter profits and has cut  annual loss forecasts by more than half as sales and cost cutting beat its projections.

Toyota now expects an operating loss of 350 billion yen for the year to March 31.

It expects a net loss of 200 billion yen instead of a loss of 450 billion yen.

For the July-September quarter, Toyota reported an operating profit of 58.0 billion yen, down 66% from a year earlier.

Its net profit fell 84% to 21.84 billion yen, while revenue dropped 24% to 4.54 trillion yen.

Toyota had been the only top Japanese carmaker expected to post a loss in the latest quarter, weighed down by severe overcapacity after years of building new factories during its boom years before the financial crisis hit.

Yesterday it announced it was pulling out of Formula 1.