LDK Solar Reports Financial Results for Fourth Quarter of Fiscal 2011
XINYU CITY, China and SUNNYVALE, Calif., April 30, 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 fourth quarter ended December 31, 2011.
All financial results are reported in U.S. dollars on a U.S. GAAP basis.
Fourth Quarter Highlights:
- Net sales of $420.2 million;
- Shipped 197.1 megawatts (MW) of wafers, 255.5 MW of cells and modules in the fourth quarter;
- Produced a total of approximately 2,317.8 MT of polysilicon during the fourth quarter; and
- Produced a total of approximately 149.6 MW of cells during the fourth quarter.
Net sales for the fourth quarter of fiscal 2011 were $420.2 million, compared to $471.9 million for the third quarter of fiscal 2011, and $920.9 million for the fourth quarter of fiscal 2010.
Gross loss for the fourth quarter of fiscal 2011 was $275.2 million, compared to gross loss of $17.0 million in the third quarter of fiscal 2011, and gross profit of $251.4 million for the fourth quarter of fiscal 2010.
Gross margin for the fourth quarter of fiscal 2011 was negative 65.5%, compared to negative 3.6% in the third quarter of fiscal 2011, and positive 27.3% in the fourth quarter of fiscal 2010.
During the preparation of its fourth quarter 2011 financial results, LDK Solar's management determined that an inventory write-down and provision for firm purchase commitment of $232.6 million was required as a result of the significant drop in market price for polysilicon, wafers and modules during the fourth quarter. As a result, gross margin and results from operations were negatively impacted in the fourth quarter of fiscal 2011.
Loss from operations for the fourth quarter of fiscal 2011 was $531.4 million, compared to loss from operations of $77.1 million for the third quarter of fiscal 2011, and income from operations of $203.8 million for the fourth quarter of fiscal 2010. Apart from the inventory write-down and provision for firm purchase commitment, LDK Solar's management determined that a provision for doubtful receivables and prepayments of $179.2 million was required in view of deteriorating solar market which negatively affected our customers and suppliers.
Operating margin for the fourth quarter of fiscal 2011 was negative 126.5% compared to negative 16.3% in the third quarter of fiscal 2011, and positive 22.1% in the fourth quarter of fiscal 2010.
Income tax benefit for the fourth quarter of fiscal 2011 was $45.1 million, compared to income tax benefit of $1.7 million in the third quarter of fiscal 2011 and income tax expense of $40.5 million in the fourth quarter of fiscal 2010.
Net loss attributable to LDK Solar's shareholders for the fourth quarter of fiscal 2011 was $588.7 million, or a loss of $4.63 per diluted ADS, compared to a net loss of $114.5 million, or a loss of $0.87 per diluted ADS for the third quarter of fiscal 2011 and net income of $145.2 million, or $1.09 per diluted ADS for the fourth quarter of fiscal 2010. The number of shares for calculating diluted ADS was approximately 127.2 million for the fourth quarter of fiscal 2011.
LDK Solar ended the fourth quarter of fiscal 2011 with $244.1 million in cash and cash equivalents and $565.1 million in short-term pledged bank deposits.
"The solar industry experienced a tremendous supply and demand imbalance throughout the value chain during the fourth quarter. Our results reflected the negative effects of this dislocation in the PV market," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Weak market demand and rapidly declining average selling prices reduced our revenue and adversely impacted our margins in the quarter.
"In 2012, we expect that excess capacity and further policy uncertainties in Europe and the U.S. will result in continued intense competition within the solar industry. As such, we remain focused on improving our cost structure by driving down production costs and closely managing our operating expenses. PV applications are increasing globally with improved affordability for solar electricity. We continue to believe that the considerable opportunities to meet global energy needs with solar power will drive long-term market growth," concluded Mr. Peng.
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 first quarter of fiscal 2012, LDK Solar estimates its revenue to be in the range of $190 million to $230 million, wafer shipments between 140 MW and 150 MW, cells and module shipments between 170 MW and 180 MW, in-house polysilicon production between 1,800 MT and 1,900 MT and in-house cell production between 40 MW and 50 MW.
For fiscal 2012, LDK Solar estimates its revenue to be in the range of $2.0 billion to $2.7 billion, polysilicon production between 12,000 MT and 15,000 MT, of which shipments to 3rd party customers are expected to be between 6,000 MT and 8,000 MT, wafer production between 2.7 gigawatts (GW) and 3.3 GW, of which shipments to 3rd party customers are expected to be between 1.5 GW and 2.0 GW, in-house cell production between 1.2 GW and 1.6 GW, and module production between 1.2 GW and 1.6 GW, with cell and module shipments to 3rd party customers between 1.0 GW and 1.3 GW and inverter shipments between 200 MW to 250 MW. LDK Solar expects PV system project construction to be in the range of 400 MW to 600 MW and to recognize between 270 MW and 360 MW through project sales and EPC services for 3rd party customers.
Conference Call Details
The LDK Solar Fourth Quarter 2011 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time (ET), on April 30, 2012. To listen to the live conference call, please dial 877-941-1427 (within U.S.) or 480-629-9664 (outside U.S.) at 8:00 a.m. ET on April 30, 2012. An audio replay of the call will be available through May 12, 2012, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4524489#.
A live webcast of the call will be available on the company's investor relations website at http://investor.ldksolar.com.
|
LDK Solar Co., Ltd. | |||
|
Unaudited Condensed Consolidated Balance Sheet Information | |||
|
(In US$'000) | |||
|
12/31/2011 |
9/30/2011 | ||
|
Assets |
|||
|
Current assets |
|||
|
Cash and cash equivalents |
244,072 |
262,550 | |
|
Pledged bank deposits |
565,062 |
605,594 | |
|
Trade accounts and bills receivable, net |
491,407 |
622,556 | |
|
Inventories |
654,947 |
918,365 | |
|
Prepayments to suppliers, net |
28,178 |
185,945 | |
|
Other current assets |
367,256 |
337,612 | |
|
Total current assets |
2,350,922 |
2,932,622 | |
|
Property, plant and equipment, net |
3,872,361 |
3,692,354 | |
|
Deposits for purchases of property, plant and equipment and land use rights |
151,701 |
163,665 | |
|
Land use rights |
293,559 |
281,782 | |
|
Prepayments to suppliers expected to be utilized beyond one year, net |
11,153 |
13,021 | |
|
Pledged bank deposits – non-current |
31,637 |
32,929 | |
|
Investments in associates and a jointly-controlled entity |
50,358 |
52,655 | |
|
Other non-current assets |
92,170 |
88,651 | |
|
Total assets |
6,853,861 |
7,257,679 | |
|
Liabilities and equity |
|||
|
Current liabilities |
|||
|
Short-term borrowings and current installments of long-term borrowings |
2,216,124 |
2,353,745 | |
|
Trade accounts and bills payable |
1,325,120 |
897,326 | |
|
Advance payments from customers, current installments |
210,412 |
255,241 | |
|
Accrued expenses and other payables |
750,148 |
698,745 | |
|
Other financial liabilities |
69,131 |
70,766 | |
|
Total current liabilities |
4,570,935 |
4,275,823 | |
|
Long-term borrowings, excluding current installments |
849,168 |
981,068 | |
|
Convertible senior notes and RMB-denominated US$-settled senior notes, less debt discount |
282,560 |
280,337 | |
|
Advance payments from customers – non-current |
121,740 |
135,891 | |
|
Other liabilities |
184,840 |
178,136 | |
|
Total liabilities |
6,009,243 |
5,851,255 | |
|
Redeemable non-controlling interests |
219,694 |
196,814 | |
|
Equity |
|||
|
Total LDK Solar Co., Ltd. shareholders' equity |
609,916 |
1,195,550 | |
|
Non-controlling interests |
15,008 |
14,060 | |
|
Total equity |
624,924 |
1,209,610 | |
|
Total liabilities and equity |
6,853,861 |
7,257,679 | |
|
LDK Solar Co., Ltd. | ||||
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Unaudited Condensed Consolidated Statements of Operations Information | ||||
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(In US$'000, except per ADS data) | ||||
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For the 3 Months Ended | ||||
|
12/31/2011 |
9/30/2011 | |||
|
Net sales |
420,169 |
471,870 | ||
|
Cost of goods sold |
(695,417) |
(488,880) | ||
|
Gross loss |
(275,248) |
(17,010) | ||
|
Selling expenses |
(15,957) |
(9,700) | ||
|
General and administrative expenses |
(226,523) |
(38,112) | ||
|
Research and development expenses |
(13,685) |
(12,275) | ||
|
Total operating expenses |
(256,165) |
(60,087) | ||
|
Loss from operations |
(531,413) |
(77,097) | ||
|
Other income (expenses): |
||||
|
Interest income |
1,988 |
2,226 | ||
|
Interest expense and amortization of debt issuance costs and debt discount |
(69,257) |
(50,732) | ||
|
Foreign currency exchange loss, net |
(13,200) |
(4,131) | ||
|
Others, net |
2,278 |
30,673 | ||
|
Loss before income tax |
(609,604) |
(99,061) | ||
|
Income tax benefit |
45,052 |
1,656 | ||
|
Net loss |
(564,552) |
(97,405) | ||
|
(Earnings) loss attributable to non-controlling interests |
(1,247) |
732 | ||
|
Earnings attributable to redeemable non-controlling interests |
(1,013) |
(7,735) | ||
|
Accretion to redemption value of redeemable non-controlling interests |
(21,913) |
(10,056) | ||
|
Net loss attributable to LDK Solar Co., Ltd. shareholders |
(588,725) |
(114,464) | ||
|
Net loss per ADS, Diluted |
$ (4.63) |
$ (0.87) | ||
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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