LDK Solar Co. Ltd.
) reported first-quarter 2013 loss per American Depositary Share
(ADS) of $1.21, wider than the Zacks Consensus Estimate of a loss
of 98 cents per ADS. However, quarterly loss narrowed from the
year-ago loss of $1.46 per ADS.
LDK Solar's net revenue was $104.3 million, higher than the Zacks
Consensus Estimate of $97 million. A sequential decrease of 23.2%
and a year-over-year decline of 47.9% in its revenues were due to
weak pricing of wafers, polysilicon, modules and cells related to
strong market competition.
Quarterly gross loss decreased 54.6% year over year to $59.5
million due to lower cost of goods sold.
LDK Solar's loss from operations was $93.2 million compared with
a loss of $135.8 million a year ago.
Interest expenses, amortization of debt issuance costs and debt
discount decreased 12.1% year over year to $57.8 million due to
decline in long-term borrowings.
LDK Solar had $174.1 million of cash and cash equivalents as of
Mar 31, 2013 versus $135.7 million as of Mar 31, 2012.
Long-term borrowing was $109.8 million as of Mar 31, 2013 versus
$889.9 million as of Mar 31, 2012.
Second Quarter Fiscal 2013 Guidance
LDK Solar anticipates its revenues to be in the range of $100 -
$150 million. In addition, the company expects wafer, and cell
and module shipments in the band of 250 - 300 megawatt (MW) and
30 - 40 MW, respectively.
) reported first-quarter 2013 loss per ADS of 45 cents per share,
wider than the Zacks Consensus Estimate of a loss of 39 cents per
JinkoSolar Holding Co. Ltd.
) reported first-quarter 2013 adjusted loss per ADS of 56 cents,
narrower than the Zacks Consensus Estimate of a loss of $1.66 per
JA Solar Holdings Co. Ltd.
) announced a loss of 85 cents per ADS in first quarter of 2013,
better than the Zacks Consensus Estimate of a loss of $1.01.
Chinese solar product manufacturers are currently facing hardship
due to stringent U.S. government laws. This was reflected on the
companies' last few quarters' financial performance. LDK Solar
also registered a negative earnings surprise in last 3 out of 4
Previously, Chinese manufacturers gathered large amount of
contracts primarily from the U.S. companies. However, the U.S.
solar markets are gradually becoming less profitable for the
Chinese solar module manufacturers due to implementation of
anti-dumping duties of 25.96% and countervailing duties of 15.24%
by the U.S. Department of Commerce.
Currently, most of the Chinese solar product manufacturers are
busy searching for new markets. A majority of the solar product
manufacturers, including LDK Solar, intend to increase their
presence in China. The companies are also revamping their
domestic operations and positioning themselves to compete in the
crowded domestic markets.
Going forward, LDK Solar expects to continue to reduce its solar
module manufacturing costs through improvements in its
manufacturing methods and reduction in operating expenses.
Xinyu City, Jiangxi Province in the People's Republic of
China-based LDK Solar and its subsidiaries are engaged in the
design, development, manufacture, and marketing of photovoltaic
products and development of power plant projects. The company
currently has a Zacks Rank #4 (Sell).
JA SOLAR HOLDGS (JASO): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
LDK SOLAR CO (LDK): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
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