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|LDK Solar Reports Financial Results for Second Quarter of Fiscal 2010|
XINYU CITY, China and SUNNYVALE, Calif., Aug 10, 2010 /PRNewswire via COMTEX/ -- 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 second quarter ended June 30, 2010.
All financial results are reported in U.S. dollars on a U.S. GAAP basis.
Net sales for the second quarter of fiscal 2010 were $565.3 million, compared to $347.6 million for the first quarter of fiscal 2010 and $228.3 million for the second quarter of fiscal 2009.
For the second quarter of fiscal 2010, gross profit was $101.8 million, compared to $54.5 million in the first quarter of fiscal 2010, and a gross loss of $205.5 million for the second quarter of fiscal 2009.
Gross margin for the second quarter of fiscal 2010 was 18.0%, compared to 15.7% in the first quarter of fiscal 2010 and negative 90.0% in the second quarter of fiscal 2009.
Income from operations for the second quarter of fiscal 2010 was $78.6 million, compared to income from operations of $33.0 million for the first quarter of fiscal 2010, and compared to a loss from operations of $235.0 million for the second quarter of fiscal 2009.
Operating margin for the second quarter of fiscal 2010 was 13.9% compared to 9.5% in the first quarter of fiscal 2010 and negative 102.9% in the second quarter of fiscal 2009.
Income tax expense for the second quarter of fiscal 2010 was $7.7 million, compared to income tax expense of $3.2 million in the first quarter of fiscal 2010 and an income tax benefit of $29.5 million in the second quarter of fiscal 2009.
Net income for the second quarter of fiscal 2010 was $45.0 million, or $0.36 per diluted ADS, compared to net income of $7.2 million, or $0.06 per diluted ADS for the first quarter of fiscal 2010 and a net loss of $216.9 million, or $2.03 per diluted ADS for the second quarter of fiscal 2009. The number of shares for calculating diluted ADS was approximately 125.9 million for the second quarter of fiscal 2010, 125.8 million for the first quarter of fiscal 2010 and 108.1 million for the second quarter of fiscal 2009.
LDK Solar ended the second quarter of fiscal 2010 with $443.1 million in cash and cash equivalents and $126.8 million in short-term pledged bank deposits.
"We were very pleased to exceed expectations for the second quarter which reflected the continued improvement in the operating environment for the solar industry and consistent execution by our team," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Our business momentum remained strong across key metrics. We achieved record quarterly revenue, robust growth in wafer shipments, stable ASPs and improved profitability.
"We continued to extend our leadership position in solar wafer production and ended the quarter with 2.3 GW of annualized wafer capacity. We were pleased to achieve this wafer capacity expansion with minimal capital expenditure. Our vertical integration plan also continued to track well during the second quarter. Just one quarter after acquiring our crystalline module manufacturing plant, we more than doubled our module shipments sequentially. Demand for our modules remained robust and we signed two new supply contracts in Europe during the second quarter.
"Improving operating efficiencies and cost structure remain a top priority for the Company. During the second quarter, profitability improved significantly as we continued to tightly manage expenses and pricing stabilized. We experienced an increasing contribution from our in-house polysilicon production. We produced nearly 1,200 MT of polysilicon in total between our 1,000 MT plant and the first 5,000 MT train of our 15,000 MT plant during the quarter. We remain optimistic about the improving PV industry trends," concluded Mr. Peng.
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 third quarter of fiscal 2010, LDK Solar estimates its revenue to be in the range of $570 million to $600 million with wafer shipments between 520 MW and 550 MW, and module shipments between 75 MW and 85 MW. For fiscal 2010, we expect our revenue to be in the range of $1.95 billion to $2.0 billion with wafer shipments between 1.95 GW and 2.0 GW and module shipments between 250 MW and 300 MW.
Conference Call Details
The LDK Solar Second Quarter 2010 teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on August 10, 2010. To listen to the live conference call, please dial 877-941-8418 (within U.S.) or 480-629-9809 (outside U.S.) at 5:00 p.m. ET on August 10, 2010. An audio replay of the call will be available through August 12, 2010, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4336990#.
LDK Solar Co., Ltd. Unaudited Condensed Consolidated Balance Sheet Information (In US$'000, except share and per share data)
6/30/2010 3/31/2010 --------- --------- Assets Current assets Cash and cash equivalents 443,066 347,355 Pledged bank deposits 126,787 96,272 Trade accounts receivable, net and bills receivable 179,676 204,519 Inventories 423,494 493,068 Prepayments to suppliers, net 39,857 34,994 Other current assets 200,197 217,354 Deferred income tax assets, net 38,248 45,602 ------ ------ Total current assets 1,451,325 1,439,164 Property, plant and equipment, net 2,736,276 2,677,888 Deposits for purchases of property, plant and equipment and land use rights 68,727 35,913 Intangible asset, net 1,633 998 Land use rights 174,700 174,691 Inventories to be processed beyond one year 15,841 5,595 Prepayments to suppliers expected to be utilized beyond one year, net 15,149 15,660 Pledged bank deposits - non-current 134,392 50,577 Investment in an associate and a joint venture 45,203 48,991 Deferred income tax assets 15,158 18,433 Other non-current assets 16,380 19,444 ------ ------ Total assets 4,674,784 4,487,354 ========= ========= Liabilities and equity Current liabilities Short-term bank borrowings and current installments of long-term bank borrowings 1,150,524 1,059,047 Convertible senior notes, net of debt discount 394,789 - Trade accounts payable and bills payable 376,773 339,383 Advance payments from customers, current portion 219,235 183,087 Accrued expenses and other payables 613,964 646,743 Income tax payable 6,714 11,383 Obligations under capital leases - current portion 34,482 33,844 Other financial liabilities 7,466 8,788 ----- ----- Total current liabilities 2,803,947 2,282,275 Convertible senior notes, net of debt discount - 393,192 Long-term bank borrowings, excluding current installments 487,007 460,020 Obligations under capital leases, excluding current installments 33,469 42,045 Advance payments from customers - non- current 157,431 166,168 Other liabilities 230,337 239,298 Deferred income tax liability 9,703 9,028 ----- ----- Total liabilities 3,721,894 3,592,026 Equity Total LDK Solar Co., Ltd. shareholders' equity 915,506 858,520 Non-controlling interests 37,384 36,808 Total equity 952,890 895,328 Total liabilities and shareholders' equity 4,674,784 4,487,354 ========= =========
LDK Solar Co., Ltd. Unaudited Condensed Consolidated Statements of Operations Information (In US$'000, except per ADS data)
For the 3 Months Ended 6/30/2010 3/31/2010 Net sales 565,291 347,550 Cost of goods sold (463,449) (293,021) -------- -------- Gross profit 101,842 54,529 Selling expenses (3,157) (3,090) General and administrative expenses (17,995) (17,513) Research and development expenses (2,069) (967) ------ ---- Total operating expenses (23,221) (21,570) ------- ------- Profit from operations 78,621 32,959 Other income (expenses): Interest income 654 926 Interest expense and amortization of convertible senior notes issuance costs and debt discount (23,103) (23,495) Foreign currency exchange loss, net (5,806) (2,937) Government subsidies 2,582 2,462 Others 178 (225) --- ---- Profit before income tax 53,126 9,690 Income tax expense (7,653) (3,186) ------ ------ Net income after taxes before non- controlling interest 45,473 6,504 (Profit) Loss attributable to non- controlling interest (424) 680 ---- --- Net income attributable to holders of ordinary shares 45,049 7,184 ------ ----- Net income per ADS, Diluted $0.36 $0.06 ----- -----
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 engages in project development activities in selected segments of the PV market. Through its broad product offering of mono and multicrystalline solar wafers and modules, LDK Solar provides its customers with a full spectrum of 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 http://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.