Feb. 19 (Bloomberg) -- Q-Cells AG, Germany's largest solar- energy company by sales, increased fourth-quarter profit 46 percent as it boosted the production of solar cells to meet increasing demand for renewable energy.

Net income rose to 37 million euros ($54.5 million) from 25.3 million euros a year earlier, the company said in a statement on its Web site. Sales increased 81 percent to 281.8 million euros.

Q-Cells, which calls itself the world's largest producer of solar cells, plans to increase output as higher oil prices boost demand for alternative power. Chief Executive Officer Anton Milner is investing in additional facilities as rising sales and increased availability of raw materials including silicon drive growth.

``These are very positive results,'' said Alastair Bishop, an analyst at Dresdner Kleinwort Wasserstein in London who recommends buying the stock. ``It shows another quarter of flawless execution.''

The shares closed little changed at 67.02 euros in Frankfurt. The stock has lost 31 percent so far this year.

Q-Cells plans to boost production to as much as 590 megawatts of equipment in 2008 from 389.2 megawatts last year. The company reiterated that it also aims to increase sales to 1.2 billion euros this year, helped by higher output.

The company is targeting operating profit, excluding earnings from its stake in Renewable Energy Corp., equal to 14 percent of sales this year. The income contribution from the REC stake missed company expectations in 2007, it said.

To contact the reporter on this story: Thom Rose in Frankfurt at trose5@bloomberg.net

Last Updated: February 19, 2008 11:51 EST