LDK Solar Reports Financial Results for Fourth Quarter of Fiscal 2010

XINYU CITY, China and SUNNYVALE, Calif., March 17, 2011 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading manufacturer of multicrystalline solar wafers and PV products, today reported its unaudited financial results for the fourth quarter ended December 31, 2010.

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

Fourth Quarter Highlights:

• Record quarterly revenue of $920.9 million, an increase of 36.3% sequentially and 202.3% year-over- year;
• Shipped 627.9 MW of wafers, 157.2 MW of modules in the fourth quarter;
• Gross margin for the fourth quarter was 27.3%;
• Net income was $145.2 million, or $1.09 per diluted ADS for the fourth quarter;
• Increased wafer capacity to 3.0 GW in December 2010;
• Produced a total of approximately 1,925 MT of polysilicon during the fourth quarter;
• Entered into several new supply agreements for wafers, modules and polysilicon.

Net sales for the fourth quarter of fiscal 2010 were $920.9 million, compared to $675.6 million for the third quarter of fiscal 2010, and $304.6 million for the fourth quarter of fiscal 2009.

Gross profit for the fourth quarter of fiscal 2010, was $251.4 million, compared to $150.0 million in the third quarter of fiscal 2010, and $30.2 million for the fourth quarter of fiscal 2009.

Gross margin for the fourth quarter of fiscal 2010 was 27.3%, compared to 22.2% in the third quarter of fiscal 2010 and 9.9% in the fourth quarter of fiscal 2009.  

Income from operations for the fourth quarter of fiscal 2010 was $202.5 million, compared to income from operations of $119.5 million for the third quarter of 2010, and a loss from operations of $16.1 million for the fourth quarter of fiscal 2009.  

Operating margin for the fourth quarter of fiscal 2010 was 22.0% compared to 17.7% in the third quarter of fiscal 2010 and negative 5.3% in the fourth quarter of fiscal 2009.

Income tax expense for the fourth quarter of fiscal 2010 was $40.5 million, compared to income tax expense of $14.8 million in the third quarter of fiscal 2010 and income tax expense of $3.7 million in the fourth quarter of fiscal 2009.

Net income for the fourth quarter of fiscal 2010 was $145.2 million, or $1.09 per diluted ADS, compared to net income of $93.4 million, or $0.72 per diluted ADS for the third quarter of fiscal 2010 and a net loss of $24.3 million, or negative $0.22 per diluted ADS for the fourth quarter of 2009. The number of shares for calculating diluted ADS was approximately 137.5 million for the fourth quarter of fiscal 2010, 136.0 million for the third quarter of fiscal 2010 and 108.5 million for the fourth of fiscal 2009.

LDK Solar ended the fourth quarter of fiscal 2010 with $202.1 million in cash and cash equivalents and $503.7 million in short-term pledged bank deposits.

"Our record results for the fourth quarter capped a remarkable year and demonstrate the success of our vertical integration strategy and strong market position," stated Xiaofeng Peng, Chairman and CEO of LDK Solar.  "We delivered a third consecutive quarter of record revenue as strong industry demand drove better than expected results."  

"During the fourth quarter, we experienced increasing contributions from our polysilicon, module and cell businesses as we executed expansion on plan.  We extended our leadership position in wafers ending the year with 3.0 GW of capacity.  We signed multiple supply contracts for polysilicon, wafers and modules and further diversified our customer base.  Importantly, our recent financing activities have further strengthened our balance sheet and enhanced our ability to pursue our long-term growth strategy."      

"We have made great strides in positioning LDK Solar to take advantage of the growth in the global PV industry.  We remain excited about the multiple growth drivers we see for our business and believe we are well positioned for success."

LDK Solar will include full year 2010 financial results in its upcoming 20-F filing with the SEC.

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 2011, LDK Solar estimates its revenue to be in the range of $800 million to $850 million with wafer shipments between 610 MW and 660 MW, and module shipments between 120 MW and 140 MW, in-house polysilicon production between 2,300 MT and 2,400 MT, in-house cell production between 45 MW and 50 MW and gross margin between 27% and 29%.

For fiscal 2011, LDK Solar expects revenue in the range of $3.5 to $3.7 billion, wafer shipments of 2.7 to 2.9 gigawatts (GW), module shipments of 800 MW to 900 MW, in-house polysilicon production of 10,000 MT and 11,000 MT, in-house cell production between 500 MW and 600 MW, and gross margin between 24% and 29%.

Conference Call Details

The LDK Solar Fourth Quarter 2010 teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on March 17, 2011.  To listen to the live conference call, please dial 877-941-2069 (within U.S.) or 480-629-9713 (outside U.S.) at 4:50 p.m. ET on March 17, 2011. An audio replay of the call will be available through March 20, 2011, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4421616#.

About LDK Solar (NYSE: LDK)

LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer of photovoltaic (PV) products and a leading manufacturer of solar wafers in terms of capacity. LDK Solar manufactures polysilicon, mono and multicrystalline ingots, wafers, modules and cells. The Company also engages in project development activities in selected segments of the PV market. Through its broad product offering, LDK Solar provides its customers with a full spectrum of PV solutions. LDK Solar's headquarters and 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 construction projects, including its polysilicon plants, 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 solar 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.