LDK still suffering in Q1; lowers FY revenue guidance

Share

In Q1 2012, LDK Solar recorded a gross loss of US$131 million. While better than the $275.2 million loss seen in Q4 2011, it is still a far cry from the profit of $241.6 million achieved in Q1 2011. Meanwhile, the company’s Q1 gross margin remained sequentially stagnant at 65 percent, compared to positive 31.5 percent in Q1 2011.

In terms of its operational results, LDK recorded a loss of $135.8 million, compared to a loss of $531.4 million in Q4 2011, and an income of $196.1 million in Q1 2011. Q1 2012 operating margin, on the other hand, was negative 67.9 percent, compared to negative 126.5 percent in Q4 2011, and positive 25.6 percent in Q1 2011.

In a statement released, the company said both gross margin and operational results were negatively affected by provisions for potential countervailing and anti-dumping duties, totaling $5.7 million, and an inventory write-down and a provision for firm purchase commitment worth $91.1 million.

Representing a sharp decrease, Q1 2012 net sales were just $200.1 million, down from the $420.2 million seen in Q4 2011, and the $766.3 million reaped in Q1 2011. The figure did, however, remain within the company’s previous guidance of sales between $190 million and $230 million.

Looking at its photovoltaic products, LDK shipped 164.4 MW worth of wafers in Q1 2012, compared to 197.1 MW in Q4 2011, and 153.9 MW worth of cells and modules, down from 255.5 MW. Meanwhile, it produced around 51.2 MW of cells and 1,900.8 MT of polysilicon in Q1 2012, compared to 149.6 MW and 2,317.8 MT, respectively, in Q4 2011.

Lower guidance

In Q2 2012, the company expects to achieve revenues of between $220 million and $270 million. In terms of its products, it forecasts wafer shipments of between 300 and 350 MW, cells and module shipments of between 140 and 180 MW, in-house polysilicon production of between 520 and 570 MT, and in-house cell production of between 80 and 100 MW.

For FY 2012, LDK said it is targeting revenues of between $1.5 billion to $2 billion, instead of the previously announced $2 billion to $2.7 billion.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

GoodWe launches residential solar carport

07 November 2024 GoodWe has developed a residential solar carport that features its Polaris building-integrated PV (BIPV) panels. The carport, which is available in 4...

Share

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.