UPDATE 1-Q-Cells says Q1 oper profit up, gets credit

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

The company maintained its outlook, which it had raised in March.

Q-Cells, which overtook Sharp (6753.T: Quote, Profile, Research) as the world's No.1 maker of solar cells in terms of volume in 2007, said earnings before interest and tax (EBIT) rose to 58.9 million euros ($91.05 million) from 36.2 million in the year-ago quarter. That was above a Reuters poll average of 52 million.

Sales rose 65 percent to 269.7 million euros, also beating estimates.

To finance future growth, Q-Cells said it had been granted a revolving credit of up to 750 million euros, which will run until March 31 next year.

Q-Cells still expects sales of about 1.275 billion euros this year and of more than 2 billion next year, while striving for a production volume at its core business of more than 1.5 gigawatt peak (GWp) in 2010.

It aims for 400 to 600 megawatt peak in thin film in 2010.

Q-Cells, rival Sharp and China's Suntech Power (STP.N: Quote, Profile, Research) are locked in a capacity race that is tightening silicon supply and raising materials costs.

Sharp said earlier this week that it was heavily banking on the new thin film technology, which has lower production costs as it uses less to no silicon, but also is less efficient in turning sunlight into electricity than other silicon-based solar cells. (Reporting by Eva Kuehnen)