SUNNYVALE, Calif. and XINYU CITY, China, Jan. 5 /PRNewswire-FirstCall/ --
LDK Solar Co., Ltd. (NYSE: LDK), a manufacturer of multicrystalline solar
wafers, today provided an updated outlook for the fourth quarter of 2008.
Based upon preliminary data for the fourth quarter, LDK Solar estimates
revenue to be in the range of $425 to $435 million and wafer shipments between
245 to 255 MW and gross margin between 10% and 13%. This compares to its
previously issued guidance for the fourth quarter of 2008 of revenue in the
range of $555 to $565 million and wafer shipments in the range of 260 to 270
MW, and gross margin between 18% and 21%. Our capacity reached 1,460 MW at
the end of 2008.
During the fourth quarter of 2008, LDK Solar experienced lower demand as
customers requested to delay shipments until 2009 in light of the current
global economic crisis and tight credit markets. The decrease in overall wafer
shipments during the quarter was partially offset by much higher than expected
OEM wafer shipments. The company also announced that it experienced a delay in
ramping production at its 1,000 MT polysilicon plant due to issues in the
final stages of plant commissioning. While the optimization process has taken
longer than expected, the plant is currently in production, and is expected to
ramp up to its designed full capacity in mid 2009. Construction of the 15,000
MT polysilicon plant remains on schedule and the Company expects to commence
silicon production in this facility during the second quarter of 2009.
As a result of these dynamics affecting the global business environment,
LDK Solar expects 2009 fiscal year results to be impacted by lower ASPs and
lower wafer shipment volumes than previously anticipated. The company's
updated outlook for the full year of fiscal 2009 is as follows:
"Late in the fourth quarter, we experienced a slowdown in our business
related to the current global financial crisis," stated Xiaofeng Peng,
Chairman and CEO of LDK Solar. "Despite a difficult operating environment, we
remain focused on executing our growth strategy and believe that our
competitive positioning as the largest and lowest-cost wafer producers in the
solar industry will provide us with a competitive edge for navigating through
these challenging times. We continue to have a solid cash position, with more
than $380 million, in addition to unused credit facilities totaling in excess
of $850 million and will continue to conservatively manage our resources. Our
operations remain at full capacity, with contract backlog remaining strong for
2009."
The business outlook for the three months ended December 31, 2008 and for
the full year ending December 31, 2009 is an estimate. Results are subject to
change based on further review by the management. LDK Solar plans to report
full fourth quarter and fiscal year 2008 results in late February or early
March 2009. Once the reporting date is finalized, LDK Solar will issue a press
release announcing the date and details of its fourth quarter and fiscal year
2008 conference call.
About LDK Solar
LDK Solar Co., Ltd. is a manufacturer of multicrystalline solar wafers,
which are the principal raw material used to produce solar cells. LDK Solar
sells multicrystalline wafers globally to manufacturers of photovoltaic
products, including solar cells and solar modules. In addition, LDK Solar
provides wafer processing services to monocrystalline and multicrystalline
solar cell and module manufacturers. 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.
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.
