Chinese solar products maker LDK Solar Co., Ltd. (LDK: Quote) Tuesday reported a wider-than-expected loss for the first quarter, citing relatively high production cost of polysilicon and continuous drop in price for polysilicon, wafers and modules. The company also provided revenue guidance for the second quarter below Street Estimates and cut its revenue view for fiscal 2012.
Xiaofeng Peng, chairman and CEO of the company said, "Our revenue was within the expected range as our results reflected first quarter seasonality and the continued difficult solar industry conditions. Industry-wide overcapacity continued and drove price declines across the entire solar supply chain, which significantly reduced our revenue and negatively impacted our margins."
Quarterly net loss available to the company's shareholders was $185.17 million, compared to a net income of $135.4 million last year. Loss per ADS was $1.46, in comparison with earnings per ADS of $0.95 in the same quarter a year ago.
On average, three analysts polled by Thomson Reuters expected the company to report loss of $1.14 per share. Analysts' estimates typically exclude special items.
Net sales for the quarter sharply declined to $200.1 million from $766.3 million in the prior-year quarter. Analysts expected revenues of $225.47 million.
Operating margin was negative 67.9 percent, compared to a positive 25.6 percent in the first quarter of fiscal 2011.
During the quarter, the company produced a total of about 1,900.8 MT of polysilicon and nearly 51.2 megawatts, or MW, of cells. It shipped 164.4 MW of wafers, 153.9 MW of cells and modules.
Looking ahead to the second quarter, the company expects revenue to be in the range of $220 million to $270 million. Analysts estimate revenues of $370.40 million.
For the quarter, LDK anticipates wafer shipments between 300 MW and 350 MW, cells and module shipments between 140 MW and 180 MW, in-house polysilicon production between 520 MT and 570 MT and in-house cell production between 80 MW and 100 MW.
For fiscal year 2012, LDK Solar now estimates revenue to be between $1.5 billion and $2 billion. Previously, the company projected revenues to be in the range of $2 billion to $2.7 billion. Analysts expect revenues of $2.07 billion.
"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," the company added.
LDK closed Monday's regular trading at $2.02 on the NYSE.
 | | To receive FREE breaking news email alerts for LDK Solar Co. Ltd., and others in your portfolio |
|
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News