LDK Solar Q3 Loss Narrows, Sees Sequentially Higher Revenues In Q4

(RTTNews) - LDK Solar Co. Ltd. (LDK), a China-based vertically integrated manufacturer of photovoltaic products, reported Tuesday a narrower net loss in its third quarter, despite lower revenues. The company said its quarterly results were in line with expectations. Looking ahead to the fourth quarter, the company sees sequentially higher revenues.

Commenting on the performance, President and CEO Sam Tong said, "We saw some signs of further improvement in the PV market during the quarter. While European PV markets remained soft, we experienced increased demand from China, North America and other emerging solar markets."

For the third quarter, net loss available to shareholders was $127 million or $0.65 per American Depository share or ADS, narrower than last year's loss of $136.9 million or $1.08 per ADS.

The company said the latest quarter results reflected an inventory write-down and provision for firm purchase commitment of $3.2 million as well as a provision for doubtful trade receivables of $4.6 million in view of the deteriorating solar market which negatively affected customers.

On average, 2 analysts polled by Thomson Reuters expected loss per share of $0.82 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the latest quarter were $156.59 million, lower than $291.5 million recorded a year before.

LDK Solar said it shipped 463.1 megawatts or MW of photovoltaic products in the quarter, consisting of 384.7 MW of wafers and 78.4 MW of cells and modules.

Gross loss for the third quarter was $37.6 million, compared to gross loss of $32.5 million a year ago. Gross margin was negative 24 percent, compared to negative 11.2 percent last year.

Loss from operations was $77.5 million, compared to prior year's loss of $75.7 million. Operating margin was negative 49.5 percent, while last year's margin was negative 26 percent.

Looking ahead to the fourth quarter, LDK Solar projects revenue to be in the range of $200 million to $250 million, wafer shipments between 480 MW and 520 MW, and cell and module shipments between 120 MW and 160 MW.

Separately, LDK Solar announced that it has entered into a new two-week forbearance arrangement with holders of a majority in aggregate principal amount of its US$-Settled 10 percent Senior Notes due 2014. The new forbearance arrangement, which expires on December 10, relates to the interest payment due under the Notes on August 28, 2013.

LDK shares closed Monday's trading at $1.60. In the extended trading, shares gained $0.03 or 1.87 percent, and traded at $1.63.