LDK Solar pares outlook, expects fourth-quarter loss

Facebook
Twitter
LinkedIn
Reddit
Email

The latest solar manufacturer to pare its financial outlook is Chinese multicrystalline wafer and polysilicon producer, LDK Solar. The company updated its numbers, estimating that revenues for the fourth quarter will be in the range of $415-$425 million, a slight drop from its previous guidance of $425-$435 million provided in early January and a significant decrease from the $555-$565 million forecast given in mid-November, while the outlook for wafer shipments continues to hover between 245 and 255 MW.

But an inventory-related writedown of $210-$220 million will help push LDK into the red, resulting in a negative gross margin and a resultant loss for the quarter of $135-$145 million.  LDK expects full-year 2008 revenues to be in the $1.63-$1.64 billion range, with wafer shipments between 810 and 820 MW, and to stay in the black for the fiscal year with a net profit of $145-$155 million.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

In its updates of capacity expansion and capital spending plans for 2009, LDK Solar said that it will delay its wafer capacity expansion by one quarter and now expects to reach 2.0-GW capacity at the end of the year, compared to its original plan of 2.3 GW.

The company also said that it will delay installation of the third 5000-MT train at its 15,000-MT polysilicon plant until 2010. The first two 5000-MT trains should reach mechanical completion at the end of the second quarter and during the second half of the year, respectively.
  
At its smaller poly plant, though, LDK expects to increase annualized poly production capacity to 2000 MT from 1000 MT by the end of 2009, in order to improve its production cost structure.  Full production capacity of the initial 1000 MT should take place by mid-2009, the company believes.   

With the changes in plans at the two poly plants, LDK now expects the combined annual production capacity of both factories to reach 12,000 MT by the end of this year, compared to the originally planned 16,000 MT.

Although LDK did not provide any further guidance for 2009 revenues, wafer shipments, or gross margins, the company said it will provide additional details, including updated guidance for 2009, when it reports fourth-quarter and full-year 2008 results on March 11.

Read Next

Premium
July 15, 2025
Virtual power plants are emerging as a potentially critical means of meeting the growing power demands from data centres in the US.
July 15, 2025
D.E. Shaw Renewable Investments (DESRI) has started construction at a 150MW solar-plus-storage project in the US state of New Mexico.
July 15, 2025
The US Department of Commerce (DoC) has initiated an investigation into the imports of polysilicon and its derivatives.
July 15, 2025
Indian renewable energy company SAEL Industries is developing a 5GW solar cell and 5GW module manufacturing facility in Greater Noida, Uttar Pradesh.
July 15, 2025
Greater policy clarity will be needed if Germany is realise its FPV potential, according to a report from Fraunhofer ISE.
July 15, 2025
Poland has awarded 1.6GW of solar PV in this year’s renewable energy auction, according to the country’s Energy Regulatory Office.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK