Shin-Etsu H1 profit up on construction materials

TOKYO Oct 23 (Reuters) - Japan's Shin-Etsu Chemical Co Ltd (4063.T) posted a 6 percent rise in first-half profit on Thursday as solid sales of construction materials made up for flattening growth in silicon wafers.

It also kept its annual outlook, in contrast to rival Sumco Corp (3436.T) which slashed its profit estimate this week.

Shares in Shin-Etsu, the world's biggest maker of silicon wafers, jumped on the news to be up 4 percent.

Shin-Etsu earned a net profit of 101 billion yen ($1 billion) in April-September and kept its annual outlook for a net profit of 200 billion yen, in line with consensus estimates.

Shin-Etsu has been trying to offset the slowdown in the electronics sector and slowing growth in its wafer business by boosting sales of construction materials in markets outside in the United States.

Shin-Etsu is the world's largest maker of polyvinyl chloride (PVC), a resin used in pipes, wires and other construction materials.

Having reversed earlier losses, its shares were trading at 4,160 yen, outperforming a 3.6 percent drop in the Nikkei average .N225. Sumco's shares slid 9.9 percent.

Shin-Etsu and Sumco together control more than half of the world's silicon wafer market. (Reporting by Mayumi Negishi; Editing by Edwina Gibbs)