LDK Solar increases sales, reduces loss in Q2

LDK Solar on Tuesday reported a 10% boost in revenue to $114.7 million in the second quarter, compared to the first three months of the year, and an 8% reduction in its net loss to $143.4 million.

Despite the massive loss and a mountain of debt totaling $4.79 billion (of which more than $4.4 billion are listed as current or short-term liabilities), LDK Solar President and CEO Sam Tong sounded optimistic about the company’s outlook: "We have been navigating the challenging solar industry dynamics with a focus on improving our cost structure and becoming a more nimble company. We are starting to see early signs of improvement within the PV market as average selling prices are beginning to stabilize."

Tong added that second-quarter revenue was in line with expectations and said the company had reduced its net loss "both sequentially and on a year-over-year basis."

Remarking on the recent trade dispute settlement between China and the European Union, Tong said, "We are also encouraged by recent updates on solar policies from China and the EU."

The vertically integrated Chinese PV manufacturer shipped 303.9 MW of wafers, up 27% from the first quarter, and 35.3 MW of cells and modules, 12% more than in Q1.

"We have built a solid pipeline of solar project business worldwide and we remain committed to working with the relevant shareholders, banks and government agencies to secure the resources needed to drive these projects forward," Tong added, pointing out that the company was working on improving its cost structure by driving down production costs and tightening operating expenses.

Tong said that by adapting the group’s business to evolving market demands, LDK Solar would be positioned for long term growth.

The company is expecting third-quarter revenue to range between $140 million and $180 million, wafer shipments between 350 MW and 450 MW and cell and module shipments between 60 MW and 80 MW.