* Q2 EBIT loss 10.6 mln euros vs 9.9 mln avg in Reuters poll
* CEO says demand for its LED products driven by China
* Shares indicated to open 0.9 pct higher (Adds CEO comment, background, shares)
FRANKFURT, July 29 (Reuters) - German chip equipment maker Aixtron said on Tuesday its second-quarter operating loss had narrowed due to cost cuts and increased demand from makers of energy efficient light-emitting diode (LED) for its products.
The company said its loss before interest and tax for the three months through June narrowed by 3 percent to 10.6 million euros ($14.2 million). Analysts in a Reuters poll had, on average, expected a loss of 9.9 million euros.
The company said it still expected 2014 revenue to remain flat compared with last year's 182.9 million euros, while its operating result would improve but remain in the red.
"Demand for LEDs is growing partially due to a wide range of new LED lighting products being sold into warehouses and stores, especially into regions such as China," said Aixtron's Chief Executive Martin Goetzeler.
His remarks echoed those of Philips, which said last week more customers were switching to its LED products at the cost of traditional light bulbs.
Aixtron shares are indicated to open 0.9 percent higher, with the German blue chip index seen up 0.2 percent.
($1 = 0.7447 Euros) (Reporting by Harro ten Wolde; Editing by Christoph Steitz and Mark Potter)