Solar panel maker LDK Solar Co. Ltd. (NYSE: LDK) this morning reported a second-quarter net loss of $2.00 per American depository share (ADS) on revenue of $235.4 million. In the same period a year ago, the company reported a loss of $0.62 per ADS on revenue of $499.4 million. Second-quarter results compare to the Thomson Reuters consensus estimates for a loss of $1.43 per ADS and $237.4 million in revenue.
The company slashed its third-quarter revenue forecast to $220 million to $260 million. The consensus estimate had called for $453.6 million. LDK expects to wafer shipments of 190 to 240 megawatts, far below the 316.7 megawatts the company shipped in the second quarter.
For the full fiscal year, LDK cut its revenue forecast from a range $1.5 billion to $2 billion to a new range of $1.1 billion to $1.5 billion.
The company’s chairman and CEO said:
Industry-wide competition and demand constraints continued to drive price declines across the entire solar supply chain and negatively impacted our margins and profitability.
Turning to the third quarter, our outlook remains cautious as we expect to see continued near-term challenges facing our industry. …
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.
It might be easier to accept LDK’s belief that things would get better in the second half of the year if it had not cut its forecast so sharply. LDK may be the weakest of all the major Chinese solar makers. In July the local government said it would use its own tax receipts to pay off the company’s loans after LDK had been forced to fire 5,000 workers. The company also sold some of its land to the local governments and took an impairment charge of $30.5 million as a result.
The company’s shares are down 2.4% in premarket trading this morning, at $1.24 in a 52-week range of $1.20 to $6.92.
LDK’s poor report has not spread to other Chinese solar makers like Suntech Power Holdings Co. Ltd. (NYSE: STP), JA Solar Holding Co. Ltd. (NASDAQ: JASO) and Trina Solar Ltd. (NYSE: TSL). All are inactive in the premarket this morning.
Paul Ausick
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
