LDK Solar reports Q1 losses, sees modest Q2 growth

LDK Solar’s report follows those of a train of other
companies around the world that have reported losses, including another Chinese firm, Solarfun, and Solon, among others. Image sourced from STOCKXPERT.

Chinese firm LDK Solar Co., Ltd. yesterday reported results for the first quarter of 2009 that mirrored the same previous woes from other solar power companies, although it maintained flat to modest growth for the second quarter of the year.

In a statement, the NYSE-listed firm said its first quarter profits went down significantly to $4.9 million from $64.6 million in the first quarter of 2008. This, however, improved on a loss of $211.4 in the fourth quarter of last year.

First quarter revenues were at $288.3 million, up 21.4% year-on-year from $233.4 million in 2008. However, revenues were down 33.6% compared with the previous quarter. The company said it sold 206 megawatts (MW) of its solar wafers, up 72.8% from a year ago.

LDK Solar ended the first quarter of 2009 with $184.4 million in cash and cash equivalents and $114.4 million in short-term pledged bank deposits.

LDK Solar’s report follows those of a train of other companies around the world that have reported losses, including another Chinese firm, Solarfun, and Solon, among others.

In April, LDK Solar announced that it has secured a RMB 200-million ($29 million) loan and received approval for a $146 million credit line from two Chinese development banks.

The announcement was similar to those that came from other Chinese renewable energy companies getting help from government-controlled financing institutions.

LDK Solar said it is continuing adjustments to its expansion plans due to current business conditions, but it reported progress in the construction of its new 15,000-metric ton capacity plant to increase cost savings through in-house polysilicon production.

For the second quarter, LDK Solar expects to ship between 200 MW to 220 MW of its solar wafers. The company shipped 191.7 MW of its products in the second quarter of 2008.


-  Eric Dorente

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