LDK Solar Reports Financial Results for First Quarter of Fiscal 2013

XINYU CITY, China and SUNNYVALE, Calif., June 11, 2013 /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 first quarter ended March 31, 2013.

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

First Quarter Highlights:

  • Net sales of $104.3 million; and
  • Shipped 240.0 megawatts (MW) of wafers, 31.4 MW of cells and modules in the first quarter.

Net sales for the first quarter of fiscal 2013 were $104.3 million, compared to $135.9 million for the fourth quarter of fiscal 2012, and $200.1 million for the first quarter of fiscal 2012.

Gross loss for the first quarter of fiscal 2013 was $59.5 million, compared to gross loss of $97.0 million in the fourth quarter of fiscal 2012, and gross loss of $131.0 million for the first quarter of fiscal 2012.

Gross margin for the first quarter of fiscal 2013 was negative 57.0%, compared to negative 71.4% in the fourth quarter of fiscal 2012, and negative 65.5% in the first quarter of fiscal 2012.

During the preparation of its first quarter 2013 financial results, LDK Solar's management determined that an inventory write-down of $15.1 million was required as a result of a continuous weakness in market price for polysilicon, wafers, cells and modules caused by industry-wide over capacity and much heated market competition.  As a result, gross margin and results from operations were negatively impacted in the first quarter of fiscal 2013.

Loss from operations for the first quarter of fiscal 2013 was $93.2 million, compared to loss from operations of $423.5 million for the fourth quarter of fiscal 2012, and loss from operations of $135.8 million for the first quarter of fiscal 2012.

Operating margin for the first quarter of fiscal 2013 was negative 89.4% compared to negative 311.7% in the fourth quarter of fiscal 2012, and negative 67.9% in the first quarter of fiscal 2012.

Income tax benefit for the first quarter of fiscal 2013 was $1.3 million, compared to income tax expense of $73.5 million in the fourth quarter of fiscal 2012 and income tax benefit of $15.6 million in the first quarter of fiscal 2012. 

Net loss available to LDK Solar's shareholders for the first quarter of fiscal 2013 was $187.1 million, or a loss of $1.21 per diluted ADS, compared to net loss of $548.5 million, or a loss of $3.91 per diluted ADS for the fourth quarter of fiscal 2012 and net loss of $185.2 million, or a loss of $1.46 per diluted ADS for the first quarter of fiscal 2012. The weighted average number of shares for calculating diluted ADS was approximately 155.1 million for the first quarter of fiscal 2013.

LDK Solar ended the first quarter of fiscal 2013 with $174.1 million in cash and cash equivalents and $168.4 million in short-term pledged bank deposits.

"The first quarter operating environment remained challenging for the solar industry," stated Xingxue Tong, President and CEO of LDK Solar.  "We are undertaking a number of initiatives focused on the restructuring of our business.  We are working closely with our stakeholders and relevant governmental agencies to negotiate solutions.  Furthermore, we remain committed to improving our cost structure by driving down production costs, tightening operating expenses and adapting our overall business to the evolving demand environment to position LDK Solar for long-term growth. 

"While China still represents the strongest global growth opportunity, we believe that Southeast Asia, Africa, India and the US are among several emerging markets with additional growth potential.  We are focused on increasing our market share in these areas, and recently reported that we signed a module supply contract with a leading PV project developer in Thailand.  Current conditions notwithstanding, we continue to believe there is a substantial market opportunity to address global energy needs with solar power," 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 second quarter of fiscal 2013, LDK Solar estimates its revenue to be in the range of $100 million to $150 million, wafer shipments between 250 MW and 300 MW and cell and module shipments between 30 MW and 40 MW.

Conference Call Details
The LDK Solar First Quarter 2013 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time (ET), on June 11, 2013.  To listen to the live conference call, please dial 877-941-2068 (within U.S.) or 480-629-9712 (outside U.S.) at 8:00 a.m. ET on June 11, 2013.  An audio replay of the call will be available through June 21, 2013, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4621992#.

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)


      3/31/2013


    12/31/2012

Assets




Current assets




    Cash and cash equivalents

174,101


98,283

    Pledged bank deposits

168,415


167,185

    Trade accounts and bills receivable, net

162,511


162,210

    Inventories

230,222


270,812

    Prepayments to suppliers, net

20,391


18,402

    Assets classified as held for sale

508,142


511,541

    Other current assets

194,964


214,291

Total current assets

1,458,746


1,442,724

Property, plant and equipment, net

3,040,452


3,087,293

Deposits for purchases of property, plant and equipment and land use rights

155,983


159,277

Land use rights

242,412


243,084

Prepayments to suppliers expected to be utilized beyond one year, net

7,214


7,978

Pledged bank deposits – non-current

13,221


17,845

Investments in associates

8,241


10,996

Other non-current assets

66,991


55,017

Total assets                                                               

4,993,260


5,024,214





Liabilities, redeemable non-controlling interests and equity




Current liabilities




    Short-term borrowings and current installments of long-term borrowings

2,522,826


2,391,327

    Trade accounts and bills payable

647,817


706,462

    Advance payments from customers, current

         installments                                                         

129,467


131,847

    Accrued expenses and other payables

739,046


721,851

    Liabilities directly associated with assets classified as

          held for sale                                                        

537,112


521,748

    RMB-denominated US$-settled senior notes, less debt discount

260,214


-

    Convertible senior notes, less debt discount

23,791


23,779

    Other financial liabilities

91,723


90,667

Total current liabilities

4,951,996


4,587,681





Long-term borrowings, excluding current installments and long-term PRC notes

109,759


109,548

RMB-denominated US$-settled senior notes, less debt discount

-


259,513

Advance payments from customers – non-current

39,816


43,700

Other liabilities

195,668


203,242

Total liabilities

5,297,239


5,203,684





Redeemable non-controlling interests

356,604


323,294





Equity








Total LDK Solar Co., Ltd. shareholders' equity

(639,357)


(484,346)

Non-controlling interests

(21,226)


(18,418)





Total equity

(660,583)


(502,764)





Total liabilities, redeemable non-controlling interests and equity

4,993,260


5,024,214





 

LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations Information

(In US$'000, except per ADS data)


For the 3 Months Ended


03/31/2013


12/31/2012





Net sales

104,341


135,898

Cost of goods sold

(163,829)


(232,933)

Gross loss

(59,488)


(97,035)

Selling expenses

(4,832)


(14,424)

General and administrative expenses

(25,914)


(130,057)

Research and development expenses

(2,995)


(2,926)

Impairment loss for goodwill and intangible assets

-


(26,743)

Impairment loss for assets held for sales

-


(74,178)

Impairment loss for property, plant and equipment

-


(78,170)

Total operating expenses

(33,741)


(326,498)

Loss from operations

(93,229)


(423,533)

Other income (expenses):




   Interest income

1,207


1,876

   Interest expense and amortization of debt issuance costs and debt discount

(57,821)


(56,574)

   Foreign currency exchange loss, net

(9,404)


(1,838)

   Others, net

1,855


3,081

Loss before income tax

(157,392)


(476,988)

Income tax benefit (expense)

1,341


(73,547)

Net loss

(156,051)


(550,535)

Loss attributable to non-controlling interests

2,966


33,825

Loss attributable to redeemable non-controlling interests

6,154


22,162

Net loss attributable to LDK Solar Co., Ltd. shareholders

(146,931)


(494,548)





Accretion to redemption value of redeemable non-controlling interests

(40,155)


(53,954)

Net loss available to LDK Solar Co., Ltd. shareholders

(187,086)


(548,502)





Net loss per ADS, Diluted

$       (1.21)


$       (3.91)





Unaudited Condensed Consolidated Statement

of Comprehensive Income Information

(In US$ '000)





Net loss

(156,051)


(550,535)

Other comprehensive loss




Foreign currency exchange translation adjustment, net of nil tax

6,471


12,222

Fair value changes in available-for-sale equity security, net of tax effect

724


(351)

Comprehensive loss

(148,856)


(538,664)

Less: comprehensive loss attributable to noncontrolling interests

(2,829)


(33,975)

Less: comprehensive loss attributable to redeemable noncontrolling interests

(5,845)


(20,936)





Comprehensive loss attributable to LDK Solar Co., Ltd. shareholders

(140,182)


(483,753)









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.



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