But Toyota predicted steady profits in the current year as an expected strengthening of the yen and slower sales growth put the brakes on its stellar performance.

"The environment is tough but we want to regard it as an opportunity for further growth," said group president Katsuaki Watanabe.

Toyota is enjoying flourishing sales, particularly in the United States, as sky-high gasoline prices boost demand for compact cars, small sport utility vehicles and hybrids which use a mix of electricity and petrol.

Net earnings rose 19.8 percent to 1.64 trillion yen (13.7 billion dollars) in the year to March, a fifth consecutive annual record and ahead of Toyota's own forecasts, a company statement said.

Operating profit gained 19.2 percent to 2.24 trillion yen while revenue increased 13.8 percent to 23.95 trillion yen, helped by a weaker yen. In the fourth quarter alone, net earnings rose 8.9 percent to 440.1 billion yen.

Toyota overtook struggling US rival General Motors as the world's top selling automaker in the three months to March and is expected to remain the world number one through this year, ending GM's 76-year reign.