China-based vertically integrated solar firm, LDK Solar, reported fourth-quarter net sales of US$135.9 million, a relatively low figure compared to US$291.5 million reported in the third quarter of 2012 and US$420.2 million in the fourth quarter of 2011. The firm shipped 184.7MW of solar wafers, and 69.1MW of solar cells and modules in the fourth quarter. Gross margin in the fourth quarter was negative 60.5%, high compared to negative 11.2% in the third quarter of 2012, but lower than negative 65.5% reported in the fourth quarter of 2011, the firm stated.
LDK Solar noted that as a result of a continuous weakness in market price for polysilicon, solar wafers, cells, modules and projects caused by industry-wide over capacity and much heated market competition, management determined that an inventory write-down of US$25.1 million was required. As a result, gross margin and results from operations were negatively impacted in the fourth quarter of 2012.
According to the firm, during the fourth quarter of 2012, management made the decision to sell its subsidiary in Hefei, Anhui Province, China. A US$74.2 million impairment loss on assets held for sale was recorded. Additionally, LDK Solar's management determined that an impairment loss for property, plant and equipment of US$78.2 million and an impairment loss for goodwill and intangible assets of US$26.7 million were required to reflect the decline in solar industry and change of business plans at certain production facilities, LDK Solar explained.
LDK Solar reported fourth-quarter net loss of US$517.0 million, compared to net loss of US$136.9 million for the third quarter of 2012 and net loss of US$588.7 million for the fourth quarter of 2011.
As of the fourth quarter of 2012, LDK Solar's debt ratio has reached 102%.
For the first quarter of fiscal 2013, LDK Solar estimates revenues to be in the range of US$80-100 million, while solar wafer shipments are to be between 260-270MW and cell and module shipments to be between 30-40MW.
