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

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
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.

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.

19 July 2022
As New South Wales is gearing up to become a renewable energy superpower, an exciting clean energy event is coming to Sydney. Energy Next is a free-to-attend industry event focusing on the latest renewable energy and energy management technologies, which will be held from 19-20 July 2022 at the ICC Sydney in Darling Harbour. Organised by the same people behind the country’s largest clean energy event, All-Energy Australia, Energy Next will bring a quality exhibition and technical session series to NSW. Energy Next will also host the Clean Energy Council’s Solar Masterclass with a program developed for solar designers and installers. Across two days, Energy Next will provide an extensive exhibition, workshops and networking opportunities for those working in the renewable energy industry to meet with leading suppliers, discover the latest technologies and gain an understanding of how to successfully launch new clean energy projects.
21 July 2022
The rooftop solar PV market is set for significant growth, but installers are being held back by complicated design software that is slow, cumbersome and fails to take into account rooftop shading, module compatibility and energy storage. Huawei’s SmartDesign 2.0 is a web-based PV and energy storage system tool that promises to solve all of those issues, and much more. This webinar will provide a live demonstration of the SmartDeisgn 2.0 tool, showing how installers can quickly complete Huawei PV & ESS system designs and assemble a professional report with 3D site view for potential customers, streamlining the design and sales service.
23 August 2022
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil, on August 23–25, 2022, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry. In 2021 – despite the Covid-19 pandemic – Intersolar South America welcomed more than 28,000 visitors and over 1,000 conference attendees over 3 days. 200+ providers showcased their products. Combining local and international expertise, Intersolar South America brings together the PV and solar thermal sector to discuss the current status and strategic trends for Latin American PV markets, as well as technology innovations and new business opportunities. Overall, distributed generation is still driving momentum in the Brazilian market.
6 September 2022
Intersolar Mexico sits at the cross-section of photovoltaics, solar heating & cooling technologies, and energy storage. The event serves as the industry’s go-to source for invaluable technology trends and premier B2B contacts in the promising Mexican solar market. From September 6–8, 2022 Intersolar Mexico together with the co-located The GREEN Expo® and Aquatech Mexico will take place in Centro Citibanamex, Mexico City.
19 September 2022
RE+ 2022 is the umbrella event that includes SPI, ESI, RE+ Power, and RE+ Infrastructure. As North America's largest renewable energy event, it's a catalyst for industry innovation that's supercharging business growth in the clean energy economy.
20 September 2022
From source to generation, from grid to consumer, the boundaries of the sector are blurring and this evolution is being shaped by established players, external disruptors, innovative start-ups and the increasingly engaged end-user. Enlit Asia is the unifying brand for POWERGEN Asia and Asian Utility Week, showcases expert knowledge, innovative solutions and foresight from industry leaders, coherent with Asian strategy to achieve a smooth transition towards a low carbon energy supply. This year, Enlit Asia will be co-located with Sustainable Energy Technology Asia (SETA) & Solar & Storage Asia (SSA).

Read Next

July 1, 2022
Hanwha Qcells’ power plant division Q ENERGY Europe has teamed up with newly rebranded Q ENERGY France to establish umbrella company Q ENERGY Solutions SE as it seeks to deepen its ties to the European market where it has a 12GW development portfolio.
July 1, 2022
The US Supreme Court has restricted the federal government’s authority to regulate greenhouse gas emissions from power plants in a ruling that critics have warned will hit renewables deployment and hobble the Biden administration’s climate agenda.
July 1, 2022
Off-grid pay-as-you-go solar provider Bboxx has partnered with telecommunications company Orange to launch a new solar mini-grid project to help accelerate clean energy access for households across the Democratic Republic of Congo (DRC).
PV Tech Premium
July 1, 2022
PV Tech Premium spoke with Cypress Creek Renewable Energy and AES Clean Energy to discuss the newly formed US Solar Buyer Consortium, its objectives, market challenges and the potential advantages it holds for US manufacturing and project development.
July 1, 2022
Energy management software company Cleartrace has secured US$20 million in a financing round to accelerate the growth of its platform.
June 30, 2022
Investor CleanCapital has acquired renewable energy developer BQ Energy, adding 300MW of late-stage solar development to its pipeline.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event