LDK Solar posts Q2 loss but "expects growth" in 2011

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The Chinese photovoltaic manufacturer announced its Q2 results yesterday and attributed falling sales figures and operating losses to the "challenging solar industry dynamics." These dynamics were attributed to, "lower pricing across the supply chain," said Chairman and CEO Xiaofeng Peng in a statement.

Sales of $499.4 million worth 429.2 megawatts (MW) of wafers and 79.4 MW of modules were reported for Q2. These results were down from $766.3 from the first quarter (Q1) 2011 and $101.8 million in Q2 2010. Impacting further on the Q2 results was a $52.9 million write down of inventory over the quarter.

Gross margin was 2.2 percent, down from 31.5 percent in Q1 and 18 percent in Q2 2010. LDK Solar had posted operating profits of $196.1 million in Q1 of this year and 78.6 million in Q2 2010.

LDK Solar’s net loss attributable to shareholders, which takes into account interest expenses, taxes and other costs stood at $82.52 million for Q2.

Full-year forecasts are for the company to bring in revenues in the $2.5 to $2.7 billion range, with a gross margin between 15 and 20 percent. Peng also commented that LDK Solars move into the US market has also been effected and had seen an increase of orders from this region.