North Coast Solar Stocks

December 19, 2007

LDK Solar’s 3rd-qtr profit soars eightfold

Filed under: LDK — Tags: , , , , , — Jason @ 5:11 pm

Wed Dec 19, 2007 5:11pm EST

NEW YORK, Dec 19 (Reuters) – Solar wafer maker LDK Solar Co Ltd (LDK) reported a more-than-eightfold increase in third-quarter profit on Wednesday, boosted by an expanded customer base and strong demand.

But stock in the Jiangxi, China-based company fell in after-hours trading to $62.90 from its New York Stock Exchange close of $66.11.

The results came two days after LDK Solar said an audit cleared it of allegations it had overstated silicon inventories.

Net income jumped to $41.6 million, or 37 cents per diluted American Depository Share (ADS), from $5.0 million, or 4 cents per diluted ADS, for the third quarter of fiscal 2006.

Sales increased over 400 percent to $158.7 million.

Analysts, on average, expected earnings of 37 cents on revenues of $145.35 million, according to Reuters Estimates.

“With the inventory investigation behind us, we have returned our focus to growing our business,” said Chairman and Chief Executive Xiaofeng Peng.

Third-quarter results were driven by continued robust demand for wafers as LDK Solar expanded its customer base. The company signed four long-term wafer supply contracts during the third quarter and five more since the quarter closed.

LDK Solar is on track to meet wafer production capacity goals by the end of 2007, and construction of a polysilicon plant is on track with the original plan, Peng said.

Polysilicon is used to manufacture solar wafers in solar panels that turn sunlight into electricity. Tight supplies of the material have driven up costs for some solar wafer producers.

For the fourth quarter, LDK Solar estimated revenue in the range of $180 million to $185 million, with diluted earnings in the range of 40 cents to 43 cents per ADS.

Analysts currently expect earnings of 40 cents per ADS on revenue of $166.2 million.

(Reporting by Steve James; Editing by Jeffrey Benkoe)

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