China’s LDK Solar swings to $589m Q1 loss on expenses, poor sales

30 April 2012 10:41  [Source: ICIS news]

SINGAPORE (ICIS)--LDK Solar swung to a net loss of $588.7m (€447.4m) in the fourth quarter of 2011 from a net income of $145.2m in the year-ago period amid sharply lower sales and heavy expenses, the China-based photovoltaic (PV) products maker said on Monday.

Operating expenses for the three months ending December 2011 ballooned to $256.2m from $49m in the previous corresponding period, the company said in a statement.

LDK Solar’s net sales for the December 2011 quarter also declined 54% year on year to $420.2 m, it said in a statement.

"The solar industry experienced a tremendous supply and demand imbalance throughout the value chain during the fourth quarter,” said LDK Solar chairman and CEO Xiaofeng Peng in the statement.

“Our results reflected the negative effects of this dislocation in the PV market…weak market demand and rapidly declining average selling prices reduced our revenue and adversely impacted our margins in the quarter,” said Peng.

LDK Solar said it expected that excess capacity and further policy uncertainties in Europe and the US will result in continued intense competition within the solar industry in 2012. 

For the first quarter of 2012, LDK Solar estimates its revenue to be in the range of $190m to $230m, and for the whole of this year it estimates revenue to be in the range of $2.0bn-2.7bn.

($1 = €0.76)

By: Tahir Ikram
+65 6780 4359

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