North Coast Solar Stocks

November 23, 2009

LDK Solar Reports Financial Results for Third Quarter 2009

Filed under: LDK — Tags: , , , , , , , — Jason @ 7:00 am

7:00 am EST, Monday November 23, 2009

XINYU CITY, China and SUNNYVALE, Calif., Nov. 23 /PRNewswire-FirstCall/ — LDK Solar Co., Ltd. (“LDK Solar”; LDK), a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the third quarter ended September 30, 2009.

All financial results are reported in U.S. dollars on a U.S. GAAP basis.

Recent Highlights:

* Third quarter 2009 revenue was $281.9 million;
* Shipped 320.5 MW of wafers, up 26.8% year-over-year;
* Gross margin for the third quarter of fiscal 2009 was 20.1%;
* Net income was $29.4 million, or $0.27 per diluted ADS;
* Increased wafer capacity to 1.7 GW and started pilot production at first 5,000 metric ton (MT) train in 15,000 MT polysilicon plant; and
* Sold a 15% ownership stake in 15,000 MT annualized capacity polysilicon plant to Jiangxi International Trust and Investment Co., Ltd. for RMB1.5 billion (equivalent to approximately US$219 million)

Net sales for the third quarter of fiscal 2009 were $281.9 million, compared to $228.3 million for the second quarter of fiscal 2009, and $541.8 million for the third quarter of fiscal 2008.

For the third quarter of fiscal 2009, gross profit was $56.8 million, compared to negative $205.5 million in the second quarter of fiscal 2009, and $122.9 million for the third quarter of fiscal 2008.

Gross margin for the third quarter of fiscal 2009 was 20.1%, compared to negative 90.0% in the second quarter of fiscal 2009 and 22.7% in the third quarter of fiscal 2008.

Income from operations for the third quarter of fiscal 2009 was $37.1 million, compared to a loss of $235.0 million for the second quarter of 2009, and compared to income from operations of $107.8 million for the third quarter of fiscal 2008.

Operating margin for the third quarter of fiscal 2009 was 13.2% compared to negative 102.9% in the second quarter of fiscal 2009 and 19.9% in the third quarter of fiscal 2008.

Income tax expense for the third quarter of fiscal 2009 was $6.6 million, compared to income tax benefit of $29.5 million in the second quarter of fiscal 2009.

Net income for the third quarter of fiscal 2009 was $29.4 million, or $0.27 per diluted ADS, compared to a net loss of $216.9 million, or $2.03 per diluted ADS for the second quarter of fiscal 2009.

LDK Solar ended the third quarter of 2009 with $67.8 million in cash and cash equivalents and $72.7 million in short-term pledged bank deposits.

“We were pleased to see wafer demand strengthen across multiple geographies during the quarter, rebounding from the lower levels seen earlier this year. Our financial results for the third quarter reflect the recent improvement in the operating environment for the solar industry,” stated Xiaofeng Peng, Chairman and CEO of LDK Solar. “During the third quarter, we continued to take steps to further strengthen our business. In addition to reaching important milestones for ramping our polysilicon production, we made great strides to further diversify and grow our business and improve our operating flexibility by increasing our near-term financial resources, while we continued to closely manage costs.

“We are making significant progress in ramping our operations. Our 1,000 MT polysilicon plant is in full scale production and our wafer plant is running at full capacity. We completed the first production run and initiated production ramp-up of operations for the first 5,000 MT train of our 15,000 MT plant during the quarter. As part of our efforts to expand our financial resources, we recently completed the sale of a 15% ownership stake in 15,000 MT plant for approximately $219 million to Jiangxi International Trust and Investment Co., Ltd. This investment strengthens our financial position and increases our operating flexibility,” continued Mr. Peng.

“During the third quarter, we made significant progress in diversifying our business. In China, the momentum in the local solar industry has continued to be encouraging. We have been awarded initial contracts to develop PV power projects in buildings, plants and integration systems, totaling up to 2 GW in various provinces. We will also co-operate with Best Solar on downstream PV projects, such as solar cell or module manufacturing, solar panel assembly or provision of certain solar utility services. As part of our ongoing efforts to expand our presence globally, we announced a partnership with Enfinity and the Balta Group for the largest rooftop solar energy installation project in Benelux, which will represent our first volume shipments of modules to Europe. We continue to be excited by the long-term growth opportunities in the solar industry,” concluded Mr. Peng.

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 fourth quarter of fiscal 2009, LDK Solar estimates its revenue to be in the range of $280 million to $310 million with wafer shipments between 320 MW to 340 MW and module shipments between 20 MW to 30 MW.

Conference Call Details

The LDK Solar Third Quarter 2009 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time (ET), on November 23, 2009. To listen to the live conference call, please dial 877-941-4774 (within U.S.) or 480-629-9760 (outside U.S.) at 7:50 a.m. ET on November 23, 2009. An audio replay of the call will be available to investors through November 25, 2009, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the passcode 4178461#.

                          LDK Solar Co., Ltd.
          Unaudited Condensed Consolidated Balance Information
             (In US$'000, except share and per share data)
                                           9/30/2009  6/30/2009
                                           ---------  ---------
Assets
Current assets
  Cash and cash equivalents                   67,753    265,662
  Pledged bank deposits                       72,665    122,999
  Trade accounts receivable                  247,212    242,138
  Bills receivable                             5,208        642
  Inventories                                392,409    384,126
  Prepayments to suppliers, net               74,063     79,163
  Due from related parties                    15,309          -
  Other current assets                       154,098    114,449
  Deferred income tax assets, net             69,909     79,360
                                              ------     ------
Total current assets                       1,098,626  1,288,539
Property, plant and equipment, net         2,480,554  2,255,388
Deposits for purchases of property, plant
 and equipment                                56,742    109,896
Intangible asset, net                          1,035        966
Land use rights                              164,422    164,846
Inventories to be processed beyond one
 year                                         25,314          -
Prepayments to suppliers expected to be
 utilized beyond one year, net                30,624     31,666
Pledged bank deposits - non-current           50,382     49,947
Debt issuance costs, net                       5,813      6,690
Investment in an associate and a joint
 venture                                      74,540     63,504
Deposits relating to sales and leaseback
 transactions                                  7,322      7,319
Deferred income tax assets                    16,907          -
Other assets                                     494          -
                                                 ---        ---
Total assets                               4,012,775  3,978,761
                                           =========  =========

Liabilities and equity
Current liabilities
   Short-term bank borrowings and current
    installments of long-term bank
    borrowings
                                           1,103,754  1,189,902
  Bills payable                              103,065    162,509
  Trade accounts payable                     154,438    128,266
  Advance payments from customers, current
   portion                                   488,677    258,438
  Accrued expenses and other payables        537,006    548,870
  Due to related parties                      32,628        647
  Income tax payable                          12,409        914
  Other financial liabilities                 20,586     19,252
                                              ------     ------
Total current liabilities                  2,452,563  2,308,798
Convertible senior notes                     400,000    400,000
Debt discount                                 (9,898)   (11,391)
Long-term bank borrowings, excluding
 current installments                        298,918    247,406
Obligations under capital leases,
 excluding current installments               25,576     30,472
Advance payments from customers - non-
 current                                     177,967    423,491
Other liabilities                             64,821     15,333
Deferred income tax liability                  7,170      4,556
                                               -----      -----
Total liabilities                          3,417,117  3,418,665
                                           ---------  ---------

Equity
LDK Solar Co., Ltd. shareholders' equity

Ordinary shares: US$0.10 par value;
 499,580,000 shares authorized;
 113,501,049 shares issued; 113,248,243
 and 113,212,122 shares outstanding as of
 September 30, 2009 and June 30, 2009,
 respectively                                 11,325     11,321
Additional paid-in capital                   476,653    473,268
Statutory reserve                             29,676     29,676
Accumulated other comprehensive income        86,620     83,736
Accumulated deficit                           (8,478)   (37,919)
                                              ------    -------
Total LDK Solar Co., Ltd. shareholders'
 equity                                      595,796    560,082

Non-controlling interests                       (138)        14
                                                ----        ---

Total equity                                 595,658    560,096
                                             -------    -------

Total liabilities and shareholders' equity 4,012,775  3,978,761
                                           =========  =========


                          LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations Information
                   (In US$'000, except per ADS data)
                                            For the 3 Months Ended
                                           9/30/2009        6/30/2009

Net sales                                    281,888          228,298
Cost of goods sold                          (225,118)        (433,819)
                                            --------         --------
Gross profit (loss)                           56,770         (205,521)
Selling expenses                              (1,549)            (954)
General and administrative expenses          (16,110)         (26,506)
Research and development expenses             (2,007)          (2,018)
                                              ------           ------
Total operating expenses                     (19,666)         (29,478)
                                             -------          -------
Profit (loss) from operations                 37,104         (234,999)
Other income (expenses):
 Interest income                                 696              394
  Interest expense and amortization of
   convertible senior notes issuance
   costs and debt discount                   (11,365)         (12,899)
 Foreign currency exchange gain, net             925              752
 Government subsidy                           13,819              360
 Others                                       (5,236)             (40)
                                              ------              ---
Profit (loss) before income tax               35,943         (246,432)
Income tax (expense) benefit                  (6,562)          29,543
                                              ------           ------
Net income (loss) after taxes before
 non-controlling interests                    29,381         (216,889)
Loss attributable to non-
 controlling interests                            60                -
                                                 ---              ---
Net income (loss) attributable to
 LDK Solar Co., Ltd. shareholders             29,441         (216,889)
                                              ------         --------

Net income (loss) per ADS, Diluted             $0.27           $(2.03)
                                               -----           ------


Advertisements

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: