Toyota announced Thursday a surprise profit last quarter and trimmed its projected red ink for the year, underlining the gradual recovery under way for Japan's giant automakers, according to The Associated Press.

The world's largest car company attributed the unexpected profit - its first after three losing quarters - to government measures around the world designed to boost sales of environmentally friendly cars and other vehicles.

It was the latest in a string of healthier reports and forecasts from rivals like Honda and Nissan adding to growing evidence that carmakers are starting to rebound after being battered by the deepest industry downturn in years.