OTTAWA (Reuters) - Lifted by high demand for new pilots, CAE Inc (CAE.TO: Quote, Profile, Research) (CGT.N: Quote, Profile, Research), a flight simulator and training company, posted better-than-expected fourth-quarter results on Wednesday and said the good times are set to continue.

Despite tighter credit markets and soaring oil prices, the long-term outlook for aerospace and defense sector growth remains positive, the Montreal-based company said.

"In terms of the year ahead, we expect to see a continued high level of activity in all segments of our business," Chief Executive Robert Brown told a conference call.

As a show of confidence in market demand and its own financial health, CAE said it decided to triple its quarterly dividend to 3 Canadian cents a share, a level last seen in 2004.

CAE also said it is working to diversify its business and reduce reliance on the volatile commercial flight simulator market.

It wants to expand its more stable military business and tap into fast-growth emerging economies. Revenue from high-growth areas in Asia, the Middle East and South America rose 25 percent in 2008 over the previous year.

Badly stung by the aeronautics slump that followed the Sept. 11 attacks in the United States, CAE is also expanding its training and services. It recently began construction of a training center in India and work is under way to expand several other facilities.

CAE reported net earnings of C$35.6 million ($35.6 million), or 14 Canadian cents a share, in the period ended March 31. That compares with a profit of C$34.3 million, or 14 Canadian cents a share, in the year-earlier quarter.

Earnings from continuing operations rose to C$47 million, or 19 Canadian cents a share, from C$35.1 million, or 14 Canadian cents.