LDK Solar Co. (LDK), the second-biggest maker of wafers used to convert sunlight to power, reported a wider second-quarter loss as output costs rose and prices fell.
The net loss was $254.3 million, compared with a loss of $87.7 million a year earlier, the Jiangxi, China-based company said in a statement. Sales tumbled 53 percent to $235.4 million.
Solar-wafer demand dropped after Chinese producers flooded the market and economies slowed. Operating losses at LDK and a weakening export outlook have dragged its stock down 70 percent this year in U.S. trading. The company’s credit rating was cut one level to A by Shanghai Brilliance Credit Rating & Investors Service Co. on Sept. 3, its second downgrade since June.
LDK shipped 316.7 megawatts of wafers and 135.6 megawatts of cells and modules in the quarter. It produced 538.1 metric tons of polysilicon, the main raw material used in solar cells. GCL-Poly Energy Holdings Ltd. (3800) is the world’s biggest maker of polysilicon and solar wafers.
LDK recorded impairment losses of $30.5 million on property, plant and equipment sales in the period, and ended the quarter with $296.2 million in cash and cash equivalents, and $523.4 million in short-term pledged bank deposits, it said.
To contact the reporter on this story: Iain Wilson in Sydney at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Hobbs at email@example.com