Reuters: Global Markets: LDK Solar falls on dim revenue outlook

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LDK Solar falls on dim revenue outlook Sep 17th 2012, 11:37 Mon Sep 17, 2012 7:37am EDT (Reuters) - China-based solar equipment manufacturer LDK Solar Co Ltd (LDK.N) forecast weak current-quarter sales and cut its full-year revenue forecast for the second time this year as it continues to grapple with a steep fall in selling prices. The revenue warning sent LDK shares down 6.5 percent before the bell. The stock has lost about three-fourths of its value in the last one year. Solar equipment makers have been reporting losses as a glut in supply led to a near two-year slump in panel prices. Average prices for solar panels slid 44 percent to 87 cents per watt during the quarter. Chinese solar companies have also been hit by anti-dumping duties imposed by the United States and they may face similar tariffs in Europe, their largest market. LDK -- which makes polysilicon, solar wafers, cells and modules -- expects third-quarter revenue of $220 million to $260 million. Analysts on average were expecting $453.6 million, according to Thomson Reuters I/B/E/S. The company forecast current-quarter wafer shipments of between 190 megawatt (MW) and 240 MW, much below the 316.7 MW it shipped in the second quarter. LDK expects to ship between 140 MW and 180 MW of cells and modules in the third quarter, compared with second-quarter shipments of 135.6 MW. The company cut its full-year revenue forecast to a range of $1.1 billion to $1.5 billion from its prior outlook of between $1.5 billion and $2.0 billion. LDK said it entered into several sales agreements to sell some of its real estate properties and land use rights to local government authorities during the second quarter as part of its liquidity plan. The company recorded a $30.5 million impairment loss due to the sale. The company, which cut 5,000 jobs earlier this year, received a relief in July, when the government of Xinyu city, in Jiangxi province, announced it would use taxpayer funds to repay the company's loans. China has provided billions of dollars in credit lines and other supports to its solar industry through state-run banks. Second-quarter net loss rose to $254.3 million, or $2 per American depository share (ADS), from $87.7 million, or 62 cents per ADS, a year earlier. Quarterly net sales plunged 53 percent to $235.4 million. LDK shares closed at $1.24 on Friday on the New York Stock Exchange. (Reporting by Swetha Gopinath and Balaji Sridharan in Bangalore; Editing by Mark Potter and Saumyadeb Chakrabarty) Link this Share this Digg this Email Reprints

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