LDK Solar Updates Outlook For 2nd Quarter And Takes Out Additional Loans

Posted by Tate Dwinnell | # |
11:01:13 am on July 3, 2009

LDK Solar just announced that is has revised its outlook for the 2nd quarter. According to Reuters, the revised outlook is still disappointing, with revenue down from $283.3 million in the first quarter to between $215 to $225 million in the second quarter.  The estimates are between $25 and $35 million lower than what analysts had expected, as well.  However, the company did raise the amount of second-quarter wafer shipments that it expects to ship to 220-230 MW, a 10 MW increase from earlier estimates.

The Reuters article quoted CLSA analyst Charles Yonts as having a somewhat gloomy outlook on LDK in the near term, saying

“We estimate that higher-than-spot price production costs and particularly intense price wars for solar wafers will lead LDK to losses next year.”

However, the company just obtained an additional $146 million worth of loans from two Chinese banks, and LDK CEO Xiaofeng Peng was quoted as having a sunnier view of the company’s future:

“We are encouraged by the recent improvement in market demand and expect to resume the expansion of our wafer plant.”

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