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LDK Solar Reports Financial Results for Third Quarter of Fiscal 2012

XINYU CITY, China and SUNNYVALE, Calif., Dec. 3, 2012 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar"; NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic products, today reported its unaudited financial results for the third quarter ended September 30, 2012.

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

Third Quarter Highlights:

  • Net sales of $291.5 million; and
  • Shipped 230.2 megawatts (MW) of wafers and 161.9 MW of cells and modules in the third quarter.

Net sales for the third quarter of fiscal 2012 were $291.5 million, compared to $235.4 million for the second quarter of fiscal 2012, and $471.9 million for the third quarter of fiscal 2011.

Gross loss for the third quarter of fiscal 2012 was $32.5 million, compared to gross loss of $92.0 million in the second quarter of fiscal 2012, and gross loss of $17.0 million for the third quarter of fiscal 2011.

Gross margin for the third quarter of fiscal 2012 was negative 11.2%, compared to negative 39.1% in the second quarter of fiscal 2012, and negative 3.6% in the third quarter of fiscal 2011.

During the preparation of its third quarter 2012 financial results, LDK Solar's management determined that an inventory write-down of $37.8 million was required as a result of a continuous drop in the market price for polysilicon, wafers, cells and modules.  As a result, gross margin and results from operations were negatively impacted in the third quarter of fiscal 2012.

Loss from operations for the third quarter of fiscal 2012 was $75.7 million, compared to loss from operations of $172.7 million for the second quarter of fiscal 2012, and loss from operations of $77.1 million for the third quarter of fiscal 2011.

Operating margin for the third quarter of fiscal 2012 was negative 26.0% compared to negative 73.4% in the second quarter of fiscal 2012, and negative 16.3% in the third quarter of fiscal 2011.

Income tax benefit for the third quarter of fiscal 2012 was $25.4 million, compared to income tax benefit of $23.7 million in the second quarter of fiscal 2012 and income tax benefit of $1.7 million in the third quarter of fiscal 2011.

Net loss available to LDK Solar's shareholders for the third quarter of fiscal 2012 was $136.9 million, or a loss of $1.08 per diluted ADS, compared to net loss of $254.3 million, or a loss of $2.00 per diluted ADS for the second quarter of fiscal 2012 and net loss of $114.5 million, or a loss of $0.87 per diluted ADS for the third quarter of fiscal 2011. The number of shares for calculating diluted ADS was approximately 127.2 million for the third quarter of fiscal 2012.

LDK Solar ended the third quarter of fiscal 2012 with $111.9 million in cash and cash equivalents and $340.7 million in short-term pledged bank deposits.

"We were pleased to deliver third quarter results that were in line with expectations," stated Xingxue Tong, President and CEO of LDK Solar.  "While we saw improvement to our top and bottom line in the third quarter, our results continue to reflect the industry-wide pricing pressure and demand weakness that is negatively impacting the entire solar supply chain."

"Over the past several weeks, we have taken a number of steps to increase operating efficiencies and improve our liquidity, including realigning the management team and the share purchase agreement with Heng Rui Xin Energy.  We are making progress on our strategy to streamline operations, prudently manage expenses and diversify our business.  We plan to continue to actively manage our business to adapt to market developments and position the company for future growth," 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 fourth quarter of fiscal 2012, LDK Solar estimates its revenue to be in the range of $230 million to $290 million, wafer shipments between 200 MW and 250 MW, cells and module shipments between 50 MW and 80 MW.

For fiscal 2012, LDK Solar estimates its revenue to be in the range of $950 million to $1 billion, wafer shipments between 910 MW and 960 MW, cell and module shipments between 500 MW and 530 MW and inverter shipments between 150 MW to 200 MW.  LDK Solar expects PV system project construction to be in the range of 200 MW to 300 MW and to recognize between 50 MW and 100 MW through project sales and EPC services for third party customers.

Conference Call Details

The LDK Solar Third Quarter 2012 teleconference and webcast is scheduled to begin at 8:00 a.m. Eastern Time (ET), on December 3, 2012.  To listen to the live conference call, please dial 877-941-1427 (within U.S.) or 480-629-9664 (outside U.S.) at 8:00 a.m. ET on December 3, 2012.  An audio replay of the call will be available through December 13, 2012, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4574985#.

A live webcast of the call will be available on the company's investor relations website at http://investor.ldksolar.com.

 

LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Balance Sheet Information

(In US$'000)






09/30/2012


06/30/2012

Assets




Current assets




    Cash and cash equivalents

111,859


296,193

    Pledged bank deposits

340,651


523,383

    Trade accounts and bills receivable, net

290,211


342,174

    Inventories

324,512


467,148

    Prepayments to suppliers, net

27,085


37,035

    Other current assets

346,972


350,320

Total current assets

1,441,290


2,016,253

Property, plant and equipment, net

3,658,189


3,728,797

Deposits for purchases of property, plant and equipment
  and land use rights

159,898


169,442

Land use rights

282,978


285,214

Prepayments to suppliers expected to be utilized beyond
  one year, net

8,701


9,519

Pledged bank deposits – non-current

30,820


30,713

Investments in associates

11,035


11,893

Other non-current assets

170,438


149,407

Total assets                                                               

5,763,349


6,401,238





Liabilities and equity




Current liabilities




    Short-term borrowings and current installments of
       long-term borrowings and short-term PRC notes

2,206,374


2,430,973

    Trade accounts and bills payable

1,043,623


1,032,861

    Advance payments from customers, current

       installments                                                         

 

129,838


 

181,823

    Accrued expenses and other payables

782,124


783,859

    Convertible senior notes, less debt discount - current

23,766


23,755

    Other financial liabilities

64,220


65,221

Total current liabilities

4,249,945


4,518,492





Long-term borrowings, excluding current installments
  and long-term PRC notes

645,367


854,172

RMB-denominated US$-settled senior notes, less debt
  discount and Convertible senior notes – non-current

 

257,228


 

257,870

Advance payments from customers – non-current

50,219


101,033

Other liabilities


215,655


223,055

Total liabilities


5,418,414


5,954,622





Redeemable non-controlling interests


299,025


254,444





Equity








Total LDK Solar Co., Ltd. shareholders' equity

29,697


171,917

Non-controlling interests


16,213


20,255





Total equity


45,910


192,172





Total liabilities and equity


5,763,349


6,401,238






 

LDK Solar Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations Information

(In US$'000, except per ADS data)




For the 3 Months Ended


09/30/2012


06/30/2012





Net sales

291,520


235,361

Cost of goods sold

(324,048)


(327,356)

Gross loss

(32,528)


(91,995)

Selling expenses

(10,373)


(11,043)

General and administrative expenses

(29,518)


(34,410)

Research and development expenses

(3,300)


(4,707)

Impairment loss for property, plant and 
 equipment

-


(30,504)

Total operating expenses

(43,191)


(80,664)

Loss from operations

(75,719)


(172,659)

Other income (expenses):




   Interest income

4,477


3,414

   Interest expense and amortization of debt 
    issuance costs and debt discount

(61,045)


(75,547)

   Foreign currency exchange gain (loss), net

1,339


(6,913)

   Others, net

9,619


(435)

Loss before income tax

(121,329)


(252,140)

Income tax benefit

25,396


23,707

Net loss

(95,933)


(228,433)

Loss attributable to non-controlling
  interests

3,925


1,037

Loss attributable to redeemable non-
  controlling interests

6,222


6,082

Net loss attributable to LDK Solar Co., Ltd. 

  shareholders

(85,786)


(221,314)





Accretion to redemption value of
  redeemable non-controlling interests

(51,157)


(33,027)

Net loss available to LDK Solar Co., Ltd. 
  shareholders

(136,943)


(254,341)





Net loss per ADS, Diluted

$     (1.08)


$     (2.00)





 

Unaudited Condensed Consolidated Statement

of Comprehensive Income Information

 





 

Net loss

(95,933)


(228,433)

Other comprehensive loss




Foreign currency exchange translation
  adjustment, net of nil tax

(7,033)


(6,486)

Fair value changes in available-for-sale equity
  security, net of tax effect

(930)


(2,693)

Comprehensive loss

(103,896)


(237,612)

Less: comprehensive loss attributable to
  noncontrolling interests

(3,663)


(1,368)

Less: comprehensive loss attributable to
  redeemable noncontrolling interests

(6,576)


(6,801)





Comprehensive loss attributable to LDK
  Solar Co., Ltd. shareholders

(93,657)


(229,443)










About LDK Solar (NYSE: LDK)

LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer of photovoltaic (PV) products. LDK Solar manufactures polysilicon, mono and multicrystalline ingots, wafers, cells, modules, systems, power projects and solutions. LDK Solar's headquarters and principal manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China. LDK Solar's office in the United States is located in Sunnyvale, California. For more information about LDK Solar and its products, please visit www.ldksolar.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, LDK Solar's ability to raise additional capital to finance its operating activities, the effectiveness, profitability and marketability of its products, the future trading of its securities, the ability of LDK Solar to operate as a public company, the period of time during which its current liquidity will enable LDK Solar to fund its operations, its ability to protect its proprietary information, the general economic and business environment and conditions, the volatility of LDK Solar's operating results and financial condition, its ability to attract and retain qualified senior management personnel and research and development staff, its ability to timely and efficiently complete its ongoing projects, and other risks and uncertainties disclosed in LDK Solar's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on information available to LDK Solar's management as of the date hereof and on its current expectations, assumptions, estimates and projections about LDK Solar and the PV industry. Actual results may differ materially from the anticipated results because of such and other risks and uncertainties. LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, assumptions, estimates and projections except as may be required by law.

SOURCE LDK Solar Co., Ltd.

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