LDK Solar Falls After Cutting Shipment, Sales Forecasts
LDK Solar Co. (LDK), the second-biggest maker of wafers for solar panels, fell the most in more than six weeks after cutting full-year forecasts for sales and shipments due to lower demand.
LDK’s American depositary receipts declined 10 percent to $1.05 at the close in New York, the biggest decrease since Oct. 19. Each ADR in the Xinyu, China-based company is equivalent to one regular share.
The company expects revenue of $950 million to $1 billion for 2012, LDK said in a statement today, down from a Sept. 17 forecast of $1.1 billion to $1.5 billion. Wafer shipments will be 910 to 960 megawatts, compared with an earlier forecast of 900 to 1,200 megawatts. The company also sees fewer solar cells and module sales than previously forecast as U.S. and European governments impose anti-dumping tariffs.
Lower prices from “weak market demand and product oversupply” eroded the company’s profit margin during the third quarter, Xingxue Tong, the company’s chief executive officer since Nov. 5, said on a conference call today.
Solar manufacturers are contending with a global glut that’s driving down prices and cutting into margins as U.S. and European governments reduce support for the alternative energy. LDK received a bailout in July for part of its more than $3.5 billion in debt from the local authority in Xinyu.
The company said on Oct. 16 it sold a 19.9 percent stake to Heng Rui Xin Energy Co., a company that’s partly owned by the authority.
LDK’s net loss for the quarter widened to $136.9 million from $114.5 million in the year-earlier period. The company cut 2,563 jobs, about 16 percent of its workforce, from the prior quarter. Wafer production costs rose to 25 cents a watt from 17 cents as it reduced output.
GCL-Poly Energy Holdings Ltd. (3800) is the world’s biggest maker of solar-panel wafers.
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