China’s LDK Solar trims Q4 revenue guidance by $70m

19 March 2012 08:25  [Source: ICIS news]

SINGAPORE (ICIS)--LDK Solar has revised down its fourth-quarter revenue guidance to $440m-450m (€334m-342m),  $70m lower at the high end of its forecast in November, the China-based photovoltaic products maker said on Monday.

Rapid decline in prices of wafers and modules prompted the trimming down of revenue forecast for the quarter, it said in a statement.

The company will announce its December-quarter 2011 financial results on 12 April.

Wafer shipments during the quarter would be within the 215-220 megawatts (MW) range, compared with its previous guidance of 200-270MW, the LDK said.

Polysilicon production, meanwhile, is expected to be in the range of 2.1m-2.3m tonnes, against its earlier projection of 2.2m-2.8m tonnes, it said.

“As a result of the rapidly declining market price for wafers and modules during the fourth quarter of 2011, LDK Solar expects to incur a write-down of inventories, realize impairment charges on contractual purchase agreements, and therefore, expects gross margin to be negative,” the company said.

In the third quarter, LDK Solar reported a net loss of $97.4m, with revenues falling 30.2% year on year to $471.9m.

The company expects its revenues this year to be in the range of $2bn-2.7bn.

($1 = €0.76)

By: Samuel Wong

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