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Flight simulator and training company CAE Inc. beat expectations as its fourth-quarter net earnings increased by 23 per cent to $49.7-million.

The Montreal-based company earned 19 cents per share for the period ended March 31 with $464.4-million of revenue.

That's up from 16 cents per share or $40.5-million of net income and $395.9-million of revenue a year earlier.

Analysts had expected 17 cents per share of net income with $447-million of revenue, according to estimates compiled by Thomson Reuters.

For the full 2010-11 financial year, CAE earned $169.8-million or 66 cents per share, compared with $144.5-million or 56 cents in 2010. Revenue grew seven per cent to $1.63-billion for the 2011 fiscal year from $1.526-billion a year before.

CAE president and chief executive Marc Parent said the company generated good cash flow, which more than offset the impact of the strong Canadian dollar.

The strong performance of CAE's military segment drove the improved results as it earned $40.8-million on $256.4-million of revenues, compared with $35-million on $217.8-million a year earlier.

CAE said the civil aerospace market was on the path of recovery, helped by strong demand in emerging markets. Orders grew 18 per cent, generating a $3.4-billion backlog.

However, the sector's operating profit decreased to $28.6-million from $29.9-million a year earlier, despite a 16.7 per cent increase in revenues to $207.9-million.

The segment included its new initiatives in mining, health-care and energy.

CAE beat its own annual forecast for sales of full-flight simulators with the sale of 29 units for the fiscal year. Some analysts expect CAE will generate 35 to 40 new orders annually in the next peak of the aerospace cycle.

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