LDK Solar Second-Quarter Loss Narrows Amid Improving Market
LDK Solar Co. (LDK), the second-biggest maker of solar wafers, said its second-quarter loss narrowed and forecast increased revenue as the market improves. Cash dropped to the lowest in 15 quarters.
LDK had a quarterly deficit of $165.3 million, the ninth in a row, compared with a $187.1 million loss in the first three months of the year and a $254.3 million loss in the same period a year earlier, it said in a statement today. The company ended the second quarter with $85.1 million in cash, the least since 2009.
Solar-component prices, which had been eroded by oversupply and weak demand, have begun to recover, with wafers gaining 7 percent this year and panels up 7.7 percent, according to data compiled by Bloomberg. Chief Executive Officer Sam Tong said this month LDK may return to profit in 2013 on domestic demand and after the European Union and China reached a tariff deal.
“We are starting to see early signs of improvement within the photovoltaic market” as prices stabilize, Tong said in the statement today. “We are also encouraged by recent updates on solar policies from China and the EU.”
LDK forecasts revenue of as much as $180 million in the third quarter from $114.7 million in the three months ended June. The company also expects third-quarter shipments of wafers of 350 megawatts to 450 megawatts and as much as 80 megawatts of cells and modules.
LDK shares have risen 24 percent in the last year.
GCL-Poly Energy Holdings Ltd. (3800) is the biggest solar-wafer maker by production capacity.
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