UPDATE 1-Ersol wavers as Spain boosts solar peers' profits

(Adds details, shares, includes Phoenix Solar, Q-Cells, SolarWorld)

By Eva Kuehnen

FRANKFURT, May 15 (Reuters) - Solar cell maker Ersol (ES6G.DE: Quote, Profile, Research, Stock Buzz) reported a weaker-than-expected rise in first-quarter operating profit on Thursday as it added capacity to keep up with peers in the race to satisfy soaring green energy demand.

Ersol's earnings before interest and tax (EBIT) rose 79.5 percent to 7.7 million euros ($11.95 million), but missed a Reuters poll average forecast of 9 million euros.

Particularly strong demand for large-scale solar power parks in Spain, which has a support scheme for renewable energy have boosted the profits of Ersol's German solar rivals. Ersol generates most of its revenues in Europe as well as in Asia.

Its sales doubled to 52.4 million euros, but were also below estimates. It made almost 80 percent of sales outside of Germany, with particularly strong business in Japan and China.

Ersol's EBIT margin fell to 14.8 percent from 16.5 percent in the year-ago quarter, weighed by its solar module business as it started its thin film production, it said.

Its shares fell 3.4 percent by 0821 GMT, underperforming Germany's technology index .TECDAX, which was down 0.7 percent.

"In the solar sector, where analysts and investors are always expecting more to come, Ersol will clearly not be a favourite," Sebastian Zank, an analyst at German bank WestLB, said.