LDK Solar Reports Financial Results for Third Quarter of Fiscal 2012

     LDK Solar Reports Financial Results for Third Quarter of Fiscal 2012

PR Newswire

XINYU CITY, China and SUNNYVALE, Calif., Dec. 3, 2012

XINYU CITY, China and SUNNYVALE, Calif., Dec. 3, 2012 /PRNewswire/ -- LDK
Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading vertically integrated
manufacturer of photovoltaic products, today reported its unaudited financial
results for the third quarter ended September 30, 2012.

All financial results are reported in U.S. dollars on a U.S. GAAP basis.

Third Quarter Highlights:

  o Net sales of $291.5 million; and
  o Shipped 230.2 megawatts (MW) of wafers and 161.9 MW of cells and modules
    in the third quarter.

Net sales for the third quarter of fiscal 2012 were $291.5 million, compared
to $235.4 million for the second quarter of fiscal 2012, and $471.9 million
for the third quarter of fiscal 2011.

Gross loss for the third quarter of fiscal 2012 was $32.5 million, compared to
gross loss of $92.0 million in the second quarter of fiscal 2012, and gross
loss of $17.0 million for the third quarter of fiscal 2011.

Gross margin for the third quarter of fiscal 2012 was negative 11.2%, compared
to negative 39.1% in the second quarter of fiscal 2012, and negative 3.6% in
the third quarter of fiscal 2011.

During the preparation of its third quarter 2012 financial results, LDK
Solar's management determined that an inventory write-down of $37.8 million
was required as a result of a continuous drop in the market price for
polysilicon, wafers, cells and modules.  As a result, gross margin and results
from operations were negatively impacted in the third quarter of fiscal 2012.

Loss from operations for the third quarter of fiscal 2012 was $75.7 million,
compared to loss from operations of $172.7 million for the second quarter of
fiscal 2012, and loss from operations of $77.1 million for the third quarter
of fiscal 2011.

Operating margin for the third quarter of fiscal 2012 was negative 26.0%
compared to negative 73.4% in the second quarter of fiscal 2012, and negative
16.3% in the third quarter of fiscal 2011.

Income tax benefit for the third quarter of fiscal 2012 was $25.4 million,
compared to income tax benefit of $23.7 million in the second quarter of
fiscal 2012 and income tax benefit of $1.7 million in the third quarter of
fiscal 2011.

Net loss available to LDK Solar's shareholders for the third quarter of fiscal
2012 was $136.9 million, or a loss of $1.08 per diluted ADS, compared to net
loss of $254.3 million, or a loss of $2.00 per diluted ADS for the second
quarter of fiscal 2012 and net loss of $114.5 million, or a loss of $0.87 per
diluted ADS for the third quarter of fiscal 2011. The number of shares for
calculating diluted ADS was approximately 127.2 million for the third quarter
of fiscal 2012.

LDK Solar ended the third quarter of fiscal 2012 with $111.9 million in cash
and cash equivalents and $340.7 million in short-term pledged bank deposits.

"We were pleased to deliver third quarter results that were in line with
expectations," stated Xingxue Tong, President and CEO of LDK Solar.  "While we
saw improvement to our top and bottom line in the third quarter, our results
continue to reflect the industry-wide pricing pressure and demand weakness
that is negatively impacting the entire solar supply chain."

"Over the past several weeks, we have taken a number of steps to increase
operating efficiencies and improve our liquidity, including realigning the
management team and the share purchase agreement with Heng Rui Xin Energy.  We
are making progress on our strategy to streamline operations, prudently manage
expenses and diversify our business.  We plan to continue to actively manage
our business to adapt to market developments and position the company for
future growth," concluded Mr. Tong.

Business Outlook

The following statements are based upon management's current expectations.
These statements are forward-looking in nature, and the actual results may
differ materially. You should read the "Safe Harbor Statement" below with
respect to the risks and uncertainties relating to these forward-looking
statements.

For the fourth quarter of fiscal 2012, LDK Solar estimates its revenue to be
in the range of $230 million to $290 million, wafer shipments between 200 MW
and 250 MW, cells and module shipments between 50 MW and 80 MW.

For fiscal 2012, LDK Solar estimates its revenue to be in the range of $950
million to $1 billion, wafer shipments between 910 MW and 960 MW, cell and
module shipments between 500 MW and 530 MW and inverter shipments between 150
MW to 200 MW.  LDK Solar expects PV system project construction to be in the
range of 200 MW to 300 MW and to recognize between 50 MW and 100 MW through
project sales and EPC services for third party customers.

Conference Call Details

The LDK Solar Third Quarter 2012 teleconference and webcast is scheduled to
begin at 8:00 a.m. Eastern Time (ET), on December 3, 2012.  To listen to the
live conference call, please dial 877-941-1427 (within U.S.) or 480-629-9664
(outside U.S.) at 8:00 a.m. ET on December 3, 2012.  An audio replay of the
call will be available through December 13, 2012, by dialing 800-406-7325
(within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code
4574985#.

A live webcast of the call will be available on the company's investor
relations website at http://investor.ldksolar.com.

 

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet Information
(In US$'000)
                                                                      09/30/2012  06/30/2012
Assets
Current assets
    Cash and cash equivalents                                         111,859     296,193
    Pledged bank deposits                                             340,651     523,383
    Trade accounts and bills receivable, net                          290,211     342,174
    Inventories                                                       324,512     467,148
    Prepayments to suppliers, net                                     27,085      37,035
    Other current assets                                              346,972     350,320
Total current assets                                                  1,441,290   2,016,253
Property, plant and equipment, net                                    3,658,189   3,728,797
Deposits for purchases of property, plant and equipment               159,898     169,442
  and land use rights
Land use rights                                                       282,978     285,214
Prepayments to suppliers expected to be utilized beyond               8,701       9,519
  one year, net
Pledged bank deposits – non-current                                   30,820      30,713
Investments in associates                                             11,035      11,893
Other non-current assets                                              170,438     149,407
Total                                                                 5,763,349   6,401,238
assets                                                               
Liabilities and equity
Current liabilities
    Short-term borrowings and current installments of                 2,206,374   2,430,973
       long-term borrowings and short-term PRC notes
    Trade accounts and bills payable                                  1,043,623   1,032,861
    Advance payments from customers, current                                       

                                                                      129,838     181,823
installments                                                         
    Accrued expenses and other payables                               782,124     783,859
    Convertible senior notes, less debt discount - current            23,766      23,755
    Other financial liabilities                                       64,220      65,221
Total current liabilities                                             4,249,945   4,518,492
Long-term borrowings, excluding current installments          645,367             854,172
  and long-term PRC notes
RMB-denominated US$-settled senior notes, less debt                                
  discount and Convertible senior notes – non-current
                                                              257,228             257,870
Advance payments from customers – non-current                 50,219              101,033
Other liabilities                                                     215,655     223,055
Total liabilities                                                     5,418,414   5,954,622
Redeemable non-controlling interests                                  299,025     254,444
Equity
Total LDK Solar Co., Ltd. shareholders' equity                29,697              171,917
Non-controlling interests                                             16,213      20,255
Total equity                                                          45,910      192,172
Total liabilities and equity                                          5,763,349   6,401,238

 

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations Information
(In US$'000, except per ADS data)
                                                       For the 3 Months Ended
                                                09/30/2012      06/30/2012
Net sales                                       291,520         235,361
Cost of goods sold                              (324,048)       (327,356)
Gross loss                                      (32,528)        (91,995)
Selling expenses                                (10,373)        (11,043)
General and administrative expenses             (29,518)        (34,410)
Research and development expenses               (3,300)         (4,707)
Impairment loss for property, plant and         -               (30,504)
 equipment
Total operating expenses                        (43,191)        (80,664)
Loss from operations                            (75,719)        (172,659)
Other income (expenses):
   Interest income                              4,477           3,414
   Interest expense and amortization of debt    (61,045)        (75,547)
    issuance costs and debt discount
   Foreign currency exchange gain (loss), net   1,339           (6,913)
   Others, net                                  9,619           (435)
Loss before income tax                          (121,329)       (252,140)
Income tax benefit                              25,396          23,707
Net loss                                        (95,933)        (228,433)
Loss attributable to non-controlling            3,925           1,037
  interests
Loss attributable to redeemable non-            6,222           6,082
  controlling interests
Net loss attributable to LDK Solar Co., Ltd. 
                                                (85,786)        (221,314)
  shareholders
Accretion to redemption value of                (51,157)        (33,027)
  redeemable non-controlling interests
Net loss available to LDK Solar Co., Ltd.       (136,943)       (254,341)
  shareholders
Net loss  per ADS, Diluted                      $     (1.08)    $     (2.00)
 

Unaudited Condensed Consolidated Statement

of Comprehensive Income Information

 
 
                                                (95,933)        (228,433)
Net loss
Other comprehensive loss
Foreign currency exchange translation           (7,033)         (6,486)
  adjustment, net of nil tax
Fair value changes in available-for-sale equity (930)           (2,693)
  security, net of tax effect
Comprehensive loss                              (103,896)       (237,612)
Less: comprehensive loss attributable to        (3,663)         (1,368)
  noncontrolling interests
Less: comprehensive loss attributable to        (6,576)         (6,801)
  redeemable noncontrolling interests
Comprehensive loss attributable to LDK          (93,657)        (229,443)
  Solar Co., Ltd. shareholders

About LDK Solar (NYSE: LDK)

LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated
manufacturer of photovoltaic (PV) products. LDK Solar manufactures
polysilicon, mono and multicrystalline ingots, wafers, cells, modules,
systems, power projects and solutions. LDK Solar's headquarters and principal
manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City,
Jiangxi Province in the People's Republic of China. LDK Solar's office in the
United States is located in Sunnyvale, California. For more information about
LDK Solar and its products, please visit www.ldksolar.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact in this press
release are forward-looking statements, including but not limited to, LDK
Solar's ability to raise additional capital to finance its operating
activities, the effectiveness, profitability and marketability of its
products, the future trading of its securities, the ability of LDK Solar to
operate as a public company, the period of time during which its current
liquidity will enable LDK Solar to fund its operations, its ability to protect
its proprietary information, the general economic and business environment and
conditions, the volatility of LDK Solar's operating results and financial
condition, its ability to attract and retain qualified senior management
personnel and research and development staff, its ability to timely and
efficiently complete its ongoing projects, and other risks and uncertainties
disclosed in LDK Solar's filings with the Securities and Exchange Commission.
These forward-looking statements involve known and unknown risks and
uncertainties and are based on information available to LDK Solar's management
as of the date hereof and on its current expectations, assumptions, estimates
and projections about LDK Solar and the PV industry. Actual results may differ
materially from the anticipated results because of such and other risks and
uncertainties. LDK Solar undertakes no obligation to update forward-looking
statements to reflect subsequent events or circumstances, or changes in its
expectations, assumptions, estimates and projections except as may be required
by law.

SOURCE LDK Solar Co., Ltd.

Website: http://www.ldksolar.com
Contact: Lisa Laukkanen, The Blueshirt Group for LDK Solar, +1-415-217-4967,
lisa@blueshirtgroup.com; Jack Lai, Executive VP and CFO, LDK Solar Co., Ltd.,
+1-408-245-8801, IR@ldksolar.com