UPDATE 2-Q-Cells says Asian growth boosts Q1 profit

(Adds share price, analyst comment)

By Eva Kuehnen

FRANKFURT, May 14 (Reuters) - Germany's Q-Cells (QCEG.DE: Quote, Profile, Research, Stock Buzz), the world's largest solar cell maker, posted a forecast-beating 63 percent rise in first-quarter operating profit on Wednesday, due to strong growth in South Korea and India.

The company also kept its outlook after raising it in March.

Q-Cells shares rose 2 percent on the Berlin stock exchange to 74 euros at 0655 GMT. The stock has fallen almost 27 percent so far this year after almost tripling last year.

"The better than expected performance was exclusively based on the silicon-based core business while there was still basically no revenue in thin-film technologies," Sven Kuerten, an analyst at German DZ Bank, said in a note to clients.

Q-Cells, which overtook Sharp (6753.T: Quote, Profile, Research, Stock Buzz) as the world's No.1 maker of solar cells by volume in 2007, plans to start serial production of thin-film modules in the middle of the year. It is aiming for production volume of 400 to 600 megawatt peak in 2010.

In its core business -- the production of mono- and polycrystalline solar cells -- it is targeting production volume of more than 1.5 gigawatt peak (GWp) in 2010.

Rival Sharp said earlier this week it was banking heavily on the new thin film technology, which has lower production costs as it uses less or even no silicon, but also is less efficient in turning sunlight into electricity than other silicon-based solar cells.  Continued...