China’s LDK Solar posts Q2 net loss of $254.3m on weak demand

17 September 2012 11:31  [Source: ICIS news]

SINGAPORE (ICIS)--China-based LDK Solar has posted a net loss of $254.3m in the second quarter (Q2) of 2012, a deepening from its first-quarter net loss of $185.2m, the photovoltaic products manufacturer said in a statement on Monday.

The Chinese firm’s net sales for Q2 were at $235.4m, compared with $499.4m recorded in the same period a year ago, the statement added. The net loss was $87.7m a year earlier.

Gross margins for Q2 were -39.1%, compared with -65.5% in the previous quarter. The firm posted a 2.2% gross margin in Q2, 2011.

LDK Solar said an inventory write-down and other provisions totalling $35.1m were factored in its Q2 financial results, because of the high production costs of polysilicon and the falling prices of polysilicon, wafers, cells and modules.  

The firm’s financial results were affected in Q2 consequently, according to the statement.

“Industry-wide competition and demand constraints continued to drive price declines across the entire solar supply chain and negatively impacted our margins and profitability,” Xiaofeng Peng, chairman and CEO of LDK Solar, said in a statement.

Peng added the firm’s revenue was within its expected range, as wafer shipments have increased, but its outlook for Q3 remains cautious because of “continued near-term challenges”.

“We continue to believe that some markets such as China will begin to see improved demand in the second half of this year and expect growth opportunities in this market to continue to expand over the next several years,” Peng said.

LDK Solar manufactures photovoltaic solar panels that turn sunlight into electricity in the solar market.

By: Dolly Wu
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly