LDK Solar reports positive financial results

LDK attributed the revenue increase to a diversified strategy, which saw increased contributuions from its polysilicon, module and cell businesses."As we gain further traction in these areas, we expect to experience enhanced top line and earnings growth," stated Xiaofeng Peng, chairman and CEO of LDK Solar.

Meanwhile, net sales reached $675.6 million, compared to $565.3 million for the second quarter of the year and $281.9 million in the third quarter of 2009. Gross profit, on the other hand, was $150.0 million, compared to $101.8 million in the second quarter of 2010 and $56.8 million for the third quarter of 2009.

The company’s net income tripled since last year, having hit $93.4 million, compared to $45.0 million for the second quarter and $29.4 million for the third quarter of 2009. Operating margin for the third quarter was 17.7 percent. This is compared to 13.9 percent in the second quarter of the year and 13.2 percent in the third quarter of 2009.

Gross margin for the third quarter was 22.2 percent, compared to 18.0 percent in the second quarter of 2010 and 20.1 percent in the third quarter of 2009. Income from operations was $119.5 million, compared to $78.6 million for the second quarter of this year and $37.1 million for the third quarter of 2009.

Additionally, the company says it shipped 569.5 megawatts (MW) of wafers and 94.1 MW of modules in the third quarter, while around 1,243 MT of polysilicon were produced.

Looking ahead

In terms of the fourth quarter of this year, the company estimates its revenue to be in the range of $710 million to $750 million, with wafer shipments between 580 MW and 600 MW, and module shipments between 120 MW and 130 MW. Meanwhile, in-house polysilicon production is expected to reach between 1,700 MT and 1,900 MT, in-house cell production between 20 MW and 23 MW, and gross margin between 24 percent and 26 percent.

For fiscal 2011, LDK Solar says it expects its revenue to be in the range of $2.9 billion to $3.3 billion, with wafer shipments between 2.5 GW and 2.8 GW and module shipments between 700 MW and 800 MW. It adds that in-house polysilicon production should be between 9,000 MT and 10,000 MT, with in-house cell production between 400 MW and 500 MW, and gross margin between 22 percent and 28 percent.

"Our results for the third quarter were strong by all measures," said Peng. "We delivered a second consecutive quarter of record revenue as strong industry demand coupled with an improved pricing environment drove better than expected results."