LDK Solar posts record revenues, shipments for Q2; guides near $2B sales, 2GW for 2010

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

LDK Solar posted record revenues for the second quarter, resulting in significant increases in gross margin and net income. The PV manufacturer shipped nearly 20% more wafers and 136% more modules compared to the previous quarter, and increased its wafering capacity to 2.3GW in June. The company expects revenues for the third quarter to be slightly above those of the just-completed period and to near the $2 billion mark for the fiscal year.

Net sales for the second quarter of fiscal 2010 were $565.3 million, up 62.7% from the $347.6 million recorded for the first quarter of FY2010 and 147.6% from the $228.3 million posted in Q2 2009.

Gross margin for the just-completed quarter was 18%, compared to 15.7% in Q1 FY2010 and negative 90% in the Q2 of last year.

Operating margin for the second quarter of fiscal 2010 was 13.9%, compared to 9.5% in Q1 of this year and negative 102.9% in the Q2 2009.

Net income for the latest quarter was $45 million, compared to $7.2 million for Q1 2010 and a net loss of $216.9 million for Q2 2009.

LDK Solar shipped 510.5MW of wafers during the second quarter, compared to 426.7MW in Q1 2010-a 19.6% increase.

The average selling price for wafers (excluding OEM sales) increased slightly quarter to quarter, rising from $0.83 to $0.85 per watt, but still well down from the $1.12/W price seen in Q2 2009.

On the module side, shipments more than doubled, reaching 73.9MW, compared to the previous quarter’s total of 31.3MW.

For the third quarter, LDK Solar estimates its revenue will be between $570 million and $600 million, with wafer shipments of 520-550MW and module shipments of 75-85MW.

For fiscal 2010, the company expects revenues to end up between $1.95 billion and $2.0 billion, with wafer shipments hitting 1.95-2.0GW and module shipments reaching 250-300MW.

Wafer sales are targeted to be a mix of 85% multicrystalline, 15% monocrystalline, with annual capacity reaching 2.6GW by Q4.

LDK’s nascent cell processing plan calls for 60MW of capacity online this month, doubling that to 120MW in the third quarter, and reaching 480MW by late 2011.

The company also said it will reduce its module processing costs by 10-15% over the course of 2010, with 1.5GW of capacity slated to come online by year’s end.

Chairman/CEO Xiaofeng Peng made the following statement in connection with the earnings announcement.

“We were very pleased to exceed expectations for the second quarter, which reflected the continued improvement in the operating environment for the solar industry and consistent execution by our team. Our business momentum remained strong across key metrics. We achieved record quarterly revenue, robust growth in wafer shipments, stable ASPs, and improved profitability.

“We continued to extend our leadership position in solar wafer production and ended the quarter with 2.3GW of annualized wafer capacity. We were pleased to achieve this wafer capacity expansion with minimal capital expenditure.

“Our vertical integration plan also continued to track well during the second quarter. Just one quarter after acquiring our crystalline module manufacturing plant, we more than doubled our module shipments sequentially. Demand for our modules remained robust and we signed two new supply contracts in Europe during the second quarter.

“Improving operating efficiencies and cost structure remain a top priority for the company. During the second quarter, profitability improved significantly as we continued to tightly manage expenses and pricing stabilized.

“We experienced an increasing contribution from our in-house polysilicon production. We produced nearly 1200MT of polysilicon in total between our 1000 MT plant, and the first 5000 MT train of our 15,000 MT plant during the quarter. We remain optimistic about the improving PV industry trends,” concluded Peng.

20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.
20 October 2021
The race is on but we need to sprint… With global climate talks fast approaching and time running out to prevent the most disastrous impacts of climate change, now is the time to act. The Summit will explore the opportunities that emerge from taking action on climate change and provide a clear pathway forward for governments, citizens and companies. Taking place just 10 days before the G20 meeting in Rome, on 30-31 of October, and in the lead up to the critical COP26 meeting in Glasgow from 31 October–12 November, this event will be instrumental in influencing ambitious global action.
10 November 2021
The solar tracker market continues to mature at breakneck speed, with designs and component selections becoming ever-more complex in the pursuit of better project economics. But a more simplistic design could deliver a triple benefit of lower Capex, EPC and Opex costs. This webinar will set out the ideal single axis tracker design for utility-scale solar farms. The design leapfrogs from decades of experience, with a comprehensive understanding and attention to the three cost structures of Capex, EPC and Opx. Sun and Steel Solar has prototyped a single axis tracker designed to deliver up to US$0.03/W in real savings compared to existing single axis trackers on the market. That’s US$30 million for every gigawatt deployed.
15 November 2021
The 10th edition of the famous Metallization and Interconnection Workshop, MIW2021, will take place in the Thor Central venue in Genk, Belgium, on Monday, November 15, and Tuesday, November 16, 2021 as a face-to-face meeting. We are longing for direct exchange of knowledge and ideas after a long time. Hopefully you can be part of it! But of course, the organizors will keep an eye on the evolution of the Covid pandemic. It will be assess carefully, whether the workshop can be held without major risks or excessive restrictions. We are looking forward to exciting talks, discussions and meetings and to welcoming you in Genk!
23 November 2021
The solar, storage and EV industries in the UK are going from strength to strength. There is no better place for the community to meet, share ideas and do business than Solar & Storage Live from 23-25 November at the NEC.There’s something for everyone; more than 150 exhibitors, a high-level conference, a start up and innovation zone, a poster zone, strategic partners to network with and much more. 
1 December 2021
Understand fully the technical and logistical supply chains that determine the production and performance of solar modules, including all related factors impacting quality, reliability & bankability. This event will be run online with streamed content, access to session recordings and chat/messaging tools for delegates to connect.

Read Next

October 19, 2021
Funds managed by private equity firm Antin Infrastructure Partners have secured a deal to acquire a majority stake in US solar and storage developer Origis Energy.
October 19, 2021
Lightsource bp has announced its entry into Poland’s solar market through a co-development deal which will see the developer proceed with a 757MWp pipeline in the country.
October 19, 2021
Shortlisted bids in Saudi Arabia’s latest solar tender have jumped significantly on the lowest price recorded in the country’s previous renewables programme, reflecting the hikes in PV equipment costs in recent months.
October 19, 2021
The White House has said renewables are still key to its budget reconciliation bill despite rumours of the investment tax credit (ITC) being modified as opposition to the bill by senators Manchin and Sinema continue
October 19, 2021
Europe's energy crisis can be a boon for renewables deployment on the continent by bolstering business cases, but familiar foes such as grid constraints will still need to be hurdled in the coming years.
October 19, 2021
Solar tracker manufacturer Soltec has signed a framework agreement with renewables developer Acciona Energia to supply trackers over a three-year period.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021