LDK Solar has released its first-quarter financial results for the period ended March 31, 2010. Net sales were $347.6 million, up in comparison to 2009’s fourth quarter’s $304.6 million and $283.3 million in 2009’s first quarter. Gross profit totaled $54.5 million, up from 2009’s fourth quarter’s $30.2 million.
Gross margin was 15.7%, where 2009’s first quarter margin was 1.7%. Income from operations equaled $33.0 million, compared to loss from operations of $3.5 million in the first quarter of 2009. Operating margin was 9.5% from 2009’s negative 5.7%. Income tax expense totaled $3.2 million where 2009’s first quarter income tax benefit was $1.6 million.
“Continued momentum in the solar industry drove results for the first quarter,” stated Xiaofeng Peng, chairman and CEO of LDK. “Our efforts to diversify our business within the module market tracked well in the quarter. We brought crystalline module manufacturing in house and signed several module supply contracts during the first quarter. In our wafer business, we continue to closely monitor demand levels to meet our customers’ needs. In April we achieved annualized wafer capacity of 2GW, maintaining our industry leadership as we continue to represent a significant share of global wafer capacity.”
Net income equaled $7.2 million in comparison of a net loss of $13.2 million in the fourth quarter of 2009. The company ended 2010’s first quarter with $374.4 million in cash and cash equivalents and $96.3 million in short-term pledged bank deposits.
LDK predicts that the second quarter of this fiscal year will see revenue between $460 million and $490 million due to wafer shipments between 460MW and 480MW and module shipments between 60MW and 70MW.