LDK Solar warns of Q3 losses, write downs and lowers 2011 guidance

Facebook
Twitter
LinkedIn
Reddit
Email

Rapidly declining prices for wafers and modules due to overcapacity and weak demand have significantly impacted expected third-quarter results at LDK Solar. The integrated PV manufacturer warned that it expected to write down US$45 to US$50 million of inventories and expected to report negative gross margin between 3.5% and 5.0%. The company lowered revenue guidance to be in the range of US$460–$470 million, down from previous guidance of US$630–$680 million.

LDK Solar cut its third-quarter wafer shipment guidance by as much as 65MW on the low end. Revised guidance was around 285–290MW, compared to 350–400MW as previously guided.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The same revision was made in relation to module shipments. LDK guided module shipments in the range of 185–190MW, down from between 250 and 300MW.

In-house polysilicon production was also reduced slightly. The company had guided production between 2,850 MT and 2,900 MT, compared to previous guidance of between 2,600MT and 2,700MT.

In contrast, in-house solar cell production is expected to increase significantly over previous guidance levels. LDK Solar estimates that production will be in the tight range of 295–300MW, compared to previous guidance of between 200MW and 220MW.

The company also revised and narrowed its guidance for full-year 2011 revenue to be in the range of US$2.20 to US$2.25 billion, down from US$2.5 to US$2.7 billion with gross margins between 15% and 20%.

Total 2011 wafer shipments are expected to in the range of 1.55–1.65GW. Previously, LDK Solar guided wafer shipment to be in the 1.8–2.0GW range.

Module shipments will realistically be in the region between 550MW and 650MW, down from 750–800MW.

In-house cell production for the full year is expected to be between 600MW and 700MW, unchanged from previous guidance. Finally, in-house polysilicon production was guided to be in the range of 10,000–11,000MT, also unchanged from previous guidance.

Read Next

September 18, 2025
CERC is finalising guidelines for virtual power purchase agreements (vPPAs) to unlock financing for over 40GW of uncontracted renewable capacity.
September 18, 2025
The capacity of virtual power plants in operation in North America has reached 37.5GW, a 13.7% year-on-year growth, according to Wood Mackenzie.
September 18, 2025
The Canadian Renewable Energy Association (CanREA) has forecast that Canada will add between 17GW and 26GW of solar PV over the next decade.
September 18, 2025
Researchers have called for enhanced international standards to detect ultraviolet-induced degradation (UVID) in PV modules after identifying “severe” levels of the problem in operational n-type panels.             
September 18, 2025
Indian PV makers have welcomed the government’s plan to add solar wafers to its ALMM List-III from June 2028.
September 17, 2025
US renewables developer Longroad Energy has reached financial close for its 400MW 1000 Mile solar project in the US state of Texas.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA