June 11, 2013 - LDK Solar Co., Ltd. today reported its unaudited financial results for the first quarter ended March 31, 2013.
All financial results are reported in U.S. dollars on a U.S. GAAP basis.
First Quarter Highlights:
Net sales of $104.3 million; and
Shipped 240.0 megawatts (MW) of wafers, 31.4MW of cells and modules in the first quarter.
Net sales for the first quarter of fiscal 2013 were $104.3 million, compared to $135.9 million for the fourth quarter of fiscal 2012, and $200.1 million for the first quarter of fiscal 2012.
Gross loss for the first quarter of fiscal 2013 was $59.5 million, compared to gross loss of $97.0 million in the fourth quarter of fiscal 2012, and gross loss of $131.0 million for the first quarter of fiscal 2012.
Gross margin for the first quarter of fiscal 2013 was negative 57.0%, compared to negative 71.4% in the fourth quarter of fiscal 2012, and negative 65.5% in the first quarter of fiscal 2012.
During the preparation of its first quarter 2013 financial results, LDK Solar's management determined that an inventory write-down of $15.1 million was required as a result of a continuous weakness in market price for polysilicon, wafers, cells and modules caused by industry-wide over capacity and much heated market competition. As a result, gross margin and results from operations were negatively impacted in the first quarter of fiscal 2013.
Loss from operations for the first quarter of fiscal 2013 was $93.2 million, compared to loss from operations of $423.5 million for the fourth quarter of fiscal 2012, and loss from operations of $135.8 million for the first quarter of fiscal 2012.
Operating margin for the first quarter of fiscal 2013 was negative 89.4% compared to negative 311.7% in the fourth quarter of fiscal 2012, and negative 67.9% in the first quarter of fiscal 2012.
Income tax benefit for the first quarter of fiscal 2013 was $1.3 million, compared to income tax expense of $73.5 million in the fourth quarter of fiscal 2012 and income tax benefit of $15.6 million in the first quarter of fiscal 2012.
Net loss available to LDK Solar's shareholders for the first quarter of fiscal 2013 was $187.1 million, or a loss of $1.21 per diluted ADS, compared to net loss of $548.5 million, or a loss of $3.91 per diluted ADS for the fourth quarter of fiscal 2012 and net loss of $185.2 million, or a loss of $1.46 per diluted ADS for the first quarter of fiscal 2012. The weighted average number of shares for calculating diluted ADS was approximately 155.1 million for the first quarter of fiscal 2013.
LDK Solar ended the first quarter of fiscal 2013 with $174.1 million in cash and cash equivalents and $168.4 million in short-term pledged bank deposits.
"The first quarter operating environment remained challenging for the solar industry," stated Xingxue Tong, President and CEO of LDK Solar. "We are undertaking a number of initiatives focused on the restructuring of our business. We are working closely with our stakeholders and relevant governmental agencies to negotiate solutions. Furthermore, we remain committed to improving our cost structure by driving down production costs, tightening operating expenses and adapting our overall business to the evolving demand environment to position LDK Solar for long-term growth.
"While China still represents the strongest global growth opportunity, we believe that Southeast Asia, Africa, India and the US are among several emerging markets with additional growth potential. We are focused on increasing our market share in these areas, and recently reported that we signed a module supply contract with a leading PV project developer in Thailand. Current conditions notwithstanding, we continue to believe there is a substantial market opportunity to address global energy needs with solar power," concluded Mr. Tong.
Business Outlook
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 second quarter of fiscal 2013, LDK Solar estimates its revenue to be in the range of $100 million to $150 million, wafer shipments between 250MW and 300MW and cell and module shipments between 30MW and 40MW.