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:    oNet sales of $291.5 million; and   oShipped 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-termborrowingsandshort-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  
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