LDK Solar reports rising 2Q12 net loss Jackie Chang,DIGITIMES,Taipei [Tuesday 18 September 2012]China-based solar firm LDK Solar has reported financial results for the second quarter ended June 30,2012,with losses rising.
According to the firm,net sales in the second quarter were US$235.4 million,showing an increase on quarter compared to US$200.1 million in the first quarter,but the figure represents a sharp on-year decrease compared to second-quarter 2011 net sales of US$499.4 million.
LDK Solar's second-quarter gross loss came to US$92 million,showing a decrease compared to US$131 million in the first quarter.Second-quarter gross margin was negative 39.1%,compared to negative 65.5%in the first quarter of 2012.
The company said an inventory write-down and a provision for firm purchase commitment totaling US$35.1 million was required as a result of the relatively high production cost of polysilicon in the second quarter and a continuous drop in the market price for polysilicon,wafers,cells and modules.
LDK Solar saw net loss widen in the second quarter,reaching US$254.3 million,a figure that is significantly higher than the net loss of US$185.2 million in the first quarter.The second-quarter 2012 net loss is around 280%higher than the net loss of US$87.7 million in the second quarter of 2011.
The firm estimates third-quarter 2012 revenues to be in the range of US$220-260 million and total 2012 revenues to be in the range of US$1.1-1.5 billion.
According to the balance sheet,LDK's debt ratio reached 93%in the second quarter of 2012.
