LDK Solar Reports Financial Results for Third Quarter of Fiscal 2010

XINYU CITY, China and SUNNYVALE, Calif., Nov. 8, 2010 /PRNewswire-FirstCall/ -- 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 third quarter ended September 30, 2010.

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

Third Quarter Highlights:

• Record quarterly revenue of $675.6 million, an increase of 19.5% sequentially and 139.7% year-over- year;
• Shipped 569.5 MW of wafers, 94.1 MW of modules in the third quarter;
• Gross margin for the third quarter was 22.2%;
• Net income was $93.4 million, or $0.72 per diluted ADS for the third quarter;
• Increased wafer capacity to 2.6 GW in September 2010;
• Produced a total of approximately 1,243 MT of polysilicon during the third quarter; and
• Entered into several solar module supply contracts during the third quarter.

Net sales for the third quarter of fiscal 2010 were $675.6 million, compared to $565.3 million for the second quarter of fiscal 2010 and $281.9 million for the third quarter of fiscal 2009.

Gross profit for the third quarter of fiscal 2010 was $150.0 million, compared to $101.8 million in the second quarter of fiscal 2010 and $56.8 million for the third quarter of fiscal 2009.

Gross margin for the third quarter of fiscal 2010 was 22.2%, compared to 18.0% in the second quarter of fiscal 2010 and 20.1% in the third quarter of fiscal 2009.  

Income from operations for the third quarter of fiscal 2010 was $119.5 million, compared to $78.6 million for the second quarter of fiscal 2010 and $37.1 million for the third quarter of fiscal 2009.  

Operating margin for the third quarter of fiscal 2010 was 17.7% compared to 13.9% in the second quarter of fiscal 2010 and 13.2% in the third quarter of fiscal 2009.

Income tax expense for the third quarter of fiscal 2010 was $14.8 million, compared to $7.7 million in the second quarter of fiscal 2010 and $6.6 million in the third quarter of fiscal 2009.

Net income for the third quarter of fiscal 2010 was $93.4 million, or $0.72 per diluted ADS, compared to $45.0 million, or $0.36 per diluted ADS for the second quarter of fiscal 2010 and $29.4 million, or $0.27 per diluted ADS for the third quarter of fiscal 2009.  The number of shares for calculating diluted ADS was approximately 136.0 million for the third quarter of fiscal 2010, 125.9 million for the second quarter of fiscal 2010 and 108.3 million for the third quarter of fiscal 2009.

LDK Solar ended the third quarter of fiscal 2010 with $571.9 million in cash and cash equivalents and $254.0 million in pledged bank deposits.

"Our results for the third quarter were strong by all measures," stated Xiaofeng Peng, Chairman and CEO of LDK Solar.  "We delivered a second consecutive quarter of record revenue as strong industry demand coupled with an improved pricing environment drove better than expected results.  

"We are benefiting from our diversification strategy as we see increasing contributions from our polysilicon, module and cell businesses.  As we gain further traction in these areas, we expect to experience enhanced top line and earnings growth.  

"During the third quarter, our expansion plans remained on track as we reached manufacturing capacity of 11,000 MT in polysilicon, 2.6 GW in wafers, 760 MW in modules and 120 MW in cells. We signed multiple supply contracts which further broaden our customer base.  Importantly, our recent financing agreement with the China Development Bank enhances our ability to pursue our long-term growth strategy.  With our strong financial position and healthy order trend, we see continued opportunity for growth."

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 fourth quarter of fiscal 2010, LDK Solar estimates its revenue to be in the range of $710 million to $750 million with wafer shipments between 580 MW and 600 MW, and module shipments between 120 MW and 130 MW, in-house polysilicon production between 1,700 MT and 1,900 MT, in-house cell production between 20 MW and 23 MW and gross margin between 24% and 26%.  

For fiscal 2011, LDK Solar expects its revenue to be in the range of $2.9 billion to $3.3 billion with wafer shipments between 2.5 GW and 2.8 GW and module shipments between 700 MW and 800 MW, in-house polysilicon production between 9,000 MT and 10,000 MT, in-house cell production between 400 MW and 500 MW and gross margin between 22% and 28%.

Conference Call Details

The LDK Solar Third Quarter 2010 teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on November 8, 2010.  To listen to the live conference call, please dial 877-941-2321 (within U.S.) or 480-629-9714 (outside U.S.) at 5:00 p.m. ET on November 8, 2010. An audio replay of the call will be available through November 10, 2010, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4377929#.

About LDK Solar (NYSE: LDK)

LDK Solar Co., Ltd. (NYSE:LDK) is a leading vertically integrated manufacturer of photovoltaic (PV) products and the world's largest producer of multicrystalline wafers. 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 our company and 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.