UPDATE 1-Canadian Solar raises '08 rev outlook, shares rise

(Recasts; adds details, share movement)

June 17 (Reuters) - China's Canadian Solar Inc (CSIQ.O) raised its 2008 revenue and output outlook, to reflect robust demand for its e-Module products, sending its shares up more than 12 percent.

The solar cells maker raised it 2008 revenue outlook to $750 million to $870 million, from its earlier estimate of $650 million to $750 million.

Analysts on average were expecting revenue of $836.1 million, according to Reuters Estimates.

Canadian Solar, which is incorporated in Canada and has manufacturing plants in China, expects to boost its 2008 output to a range of 230 megawatts (MW) to 260 MW, from its prior outlook of 200 MW to 220 MW.

The company also plans to increase annual ingot and wafer capacity to 150 MW to 200 MW, from a previous target of 40 MW to 60 MW.

Solar companies have enjoyed rapid growth in recent years as soaring oil prices and concerns about climate changes have fuelled an interest in sources of renewable energy.

Canadian Solar said it has commenced delivery of e-Modules to Pro Solar Solarstrom GmbH and Iliotec Solar GmbH of Germany, and expects the sales to be realised in the second half of 2008.

The company added that it also will ship 10 MW to 12 MW of e-Modules to the United States and South Korea in 2008.

Shares of the company were trading up $5.33 at $47.79 Tuesday morning on Nasdaq. (Reporting by Shradhha Sharma in Bangalore; Editing by Amitha Rajan)