LDK Solar 3Q profit falls, demand outlook strong

posted: 78 DAYS 19 HOURS AGO

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NEW YORK -LDK Solar Co. Ltd., a Chinese maker of solar energy equipment, on Monday reported a 67 percent decline in third-quarter earnings, but said rising demand should boost its fourth-quarter revenue above analysts' expectations.

The company said its customers bought significantly more solar wafers and solar modules in the third quarter, but weak selling prices eroded margins. Shipments of solar wafers jumped 27 percent to 320.5 megawatts.

Like its industry peers, demand recovery was not enough to offset the impact of drastically lower prices. Prices of solar cells have been hurt by weaker prices for polysilicon, a key ingredient used in the making of solar products. Solar equipment makers have cut prices for solar cells as their polysilicon costs have fallen.

LDK shares rose 56 cents, or 7 percent, to $8.56 in morning trading.

Quarterly earnings fell to $29.4 million, or 27 cents per American Depository Share, in the three months ended Sept. 30 from $88.4 million, or 77 cents per ADS, during the same period last year.

Analysts survyed by Thomson Reuters expected a loss of 10 cents per ADS.

Revenue fell 48 percent to $281.9 million from $541.8 million in the prior-year period. Analysts, on average, forecast expected revenue of $277.2 million.

Echoing its solar peers, LDK predicted a continued rebound in demand for the clean technology. It predicted fourth-quarter revenue in the range between $280 million and $310 million, well above analyst expectations of $258.7 million.

LDK also estimated wafer shipments between 320 megawatts and 340 megawatts and module shipments between 20 megawatts and 30 megawatts.

2009-11-23 11:00:08