China's LDK Solar swings to $185m Q1 loss on difficult conditions

26 June 2012 10:11  [Source: ICIS news]

SINGAPORE (ICIS)--China’s LDK Solar swung to a net loss of $185.2m (€148m) in its first quarter of fiscal 2012 from a net profit of $135.4m in the corresponding quarter of last year, citing difficult solar industry conditions, the photovoltaic producer said on Tuesday.

The company’s net revenue in the first quarter fell 74% year on year to $200m, and saw a first-quarter gross loss of $131m, it said in a statement.

“Industry-wide overcapacity continued and drove price declines across the entire solar supply chain, which significantly reduced our revenue and negatively impacted our margins,” said Xiaofeng Peng, Chairman and CEO of LDK Solar.

LDK Solar estimates its revenue to range from $220m to $270m for the second quarter of fiscal 2012, the statement added.

“While we expect to see continued challenging conditions in the solar industry in the near-term, we anticipate that some markets such as China will begin to see improved demand as the year progresses,” Peng said.

($1 = €0.80)

By: Joey Lau

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