LDK Solar(LDK),a China-based vertically integrated solar firm,has reported its unaudited financial results for the first quarter ended March 31,2012.
The firm reported net sales for the first quarter of fiscal 2012 were US$200.1 million,compared to US$420.2 million for the fourth quarter of fiscal 2011,and US$766.3 million for the first quarter of fiscal 2011.Gross loss for the first quarter of fiscal 2012 was US$131.0 million,compared to gross loss of US$275.2 million in the fourth quarter of fiscal 2011,and gross profit of US$241.6 million for the first quarter of fiscal 2011.Gross margin for the first quarter of fiscal 2012 was negative 65.5%,compared to negative 65.5%in the fourth quarter of fiscal 2011,and positive 31.5%in the first quarter of fiscal 2011,according to LDK.
During the preparation of its first quarter 2012 financial results,LDK Solar's management determined that an inventory write-down and a provision for firm purchase commitment totaling US$91.1 million was required as a result of the relatively high production cost of polysilicon in the first quarter and continuous drop in market price for polysilicon,wafers,and modules.An additional provision was required for potential countervailing and anti-dumping duties totaling US$5.7 million.As a result,gross margin and results from operations were negatively impacted in the first quarter of fiscal 2012.
Net loss for the first quarter of fiscal 2012 was US$185.2 million,compared to a net loss of US$588.7 million for the fourth quarter of fiscal 2011 and net income of US$135.4 million for the first quarter of fiscal 2011.
Business Outlook
For the second quarter of fiscal 2012,LDK Solar estimates its revenue to be in the range of US$220-270 million,wafer shipments between 300-350MW,cells and module shipments between 140-180 MW,in-house polysilicon production between 520-570MT and in-house cell production between 80-100MW.
For fiscal 2012,LDK Solar estimates its revenue to be in the range of US$1.5-2.0 billion.
