LDK Solar posts second consecutive quarterly loss

LDK Solar has continued the trend of Q3 2011 results, reflecting the tough times facing many solar manufacturers, by posting its second consecutive quarter gross loss. The loss of $17 million follows on from an $11 million loss for Q2 2011.

The result contrasts strongly to a profit of $150 million in Q3 2010. Earnings also show a strong year-on-year decline from $675.6 million in Q3 2010, to $471.9 million in Q3 2011. LDK’s earnings have, in fact, almost halved in comparison to the fourth quarter (Q4) 2010, when net sales of $920.9 million were reported.

As with many manufacturers, inventory write-downs weighed heavily on LDK Solar’s books, with a $47.3 million write-down being reported.

The company reported that it had shipped 292.5 megawatts (MW) of wafers and 192.1 MW of modules in Q3.

In announcing the results, chairman and CEO, Xiaofeng Peng released a statement saying that during this period of challenging conditions, the focus would remain on strengthening the company’s balance sheet, increasing operating efficiencies and reducing costs.

LDK’s working capital was reported as $262.6 million in cash and equivalents.

"While we continue to believe that the significant opportunities to meet global energy needs with solar power will drive long-term market growth, in the near-term we expect challenging conditions in the solar industry to continue," said Peng.