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From: OmertaSoldier5/22/2009 12:19:54 AM
   of 79
 
Q1 2009 report LDK Solar Reports Financial Results for First Quarter 2009
On Thursday May 21, 2009, 4:05 pm EDT
Buzz up! Print Related:LDK Solar Co.Ltd.
XINYU CITY, China and SUNNYVALE, Calif., May 21 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK - News), a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the first quarter ended March 31, 2009.

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LDK 9.30 -0.55

First quarter 2009 revenue was $283.3 million, up 21.4% year-over-year;
Secured RMB 200 million loan from China Development Bank and received approval for RMB 1 billion credit line from Agricultural Development Bank of China;
And shipped 206 MW of wafers, up 72.8% year-over-year.

Net sales for the first quarter of fiscal 2009 were $283.3 million, down 33.6% from $426.6 million for the fourth quarter of fiscal 2008, and up 21.4% from $233.4 million for the first quarter of fiscal 2008.

For the first quarter of fiscal 2009, gross profit was $4.9 million, compared to negative $211.4 million in the fourth quarter of fiscal 2008, and $64.6 million for the first quarter of fiscal 2008.

During the course of the preparation of LDK Solar's 2008 annual report, LDK Solar determined that a further write-down of approximately $87.5 million to its inventories and an additional provision for doubtful recoveries of approximately $12.3 million for its prepayments to suppliers at December 31, 2008 are required to properly adjust previously announced preliminary unaudited financial results for the fourth quarter and fiscal year ended December 31, 2008. In addition, LDK Solar's previously reported unaudited fourth quarter 2008 financial results have been revised to reflect an increase in interest expense from $8.3 million to $9.7 million in the fourth quarter of 2008 due to the adoption and retroactive application of Financial Accounting Standards Board Staff Position Accounting Principles Board 14-1 ("FSP APB 14-1"), "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)". As a result of these, gross loss and loss from operations for fourth quarter of fiscal 2008 were adjusted accordingly.

Gross margin for the first quarter of fiscal 2009 was 1.7%, compared to negative 49.6% in the fourth quarter of fiscal 2008 and 27.7% in the first quarter of fiscal 2008.

Loss from operations for the first quarter of fiscal 2009 was $16.1 million, compared to a loss of $251.6 million for the fourth quarter of 2008, and compared to income from operations of $52.5 million for the first quarter of fiscal 2008.

Operating margin for the first quarter of fiscal 2009 was negative 5.7% compared to negative 59.0% in the fourth quarter of fiscal 2008 and 22.5% in the first quarter of fiscal 2008.

Income tax benefit for the first quarter of fiscal 2009 was $1.6 million, compared to income tax benefit of $30.5 million in the fourth quarter of fiscal 2008.

Net loss for the first quarter of fiscal 2009 was $22.5 million, or $0.21 per diluted ADS, compared to a net loss of $219.0 million, or $2.05 per diluted ADS for the fourth quarter of fiscal 2008.

LDK Solar ended the first quarter of 2009 with $184.4 million in cash and cash equivalents and $114.4 million in short-term pledged bank deposits.

"As expected, the first quarter of 2009 was characterized by a continued challenging operating environment for economies and industries globally, not precluding the solar industry," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "During the quarter, we remained focused on positioning the company for future growth, while aligning our operations and near-term strategies to be more reflective of the current business conditions.

"Our management team demonstrated a continued focus on monitoring capital spending, enhancing cost savings and managing our cash position in the first quarter. We continue to adjust our expansion plans in order to most effectively reduce near-term capital expenditure outlays and to best align with the decrease in demand seen industry-wide. We continued to ramp polysilicon production in our 1,000 MT polysilicon plant and are pleased with the progress in the construction our 15,000 MT plant and look forward to the increasing cost savings that in-house polysilicon production will afford as our polysilicon production grows," continued Mr. Peng.

"Additionally, we secured a loan for RMB 200 million from China Development Bank and received approval for a RMB 1 billion credit line from Agricultural Development Bank of China in April. We are proud of our ability to enhance our financial resources at a time when credit remains retracted and believe that the support from China reflects their continued commitment to fostering growth within the local solar industry."

"We continue to be confident in our positioning within the solar industry as we believe that our lean cost structure and economies of scale are important differentiators as we pursue our long-term growth strategy," 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 second quarter of fiscal 2009, LDK Solar estimates its wafer shipments between 200 MW to 220 MW.

Conference Call Details

The LDK Solar First Quarter 2009 teleconference and webcast is scheduled to begin at 5:00 p.m. Eastern Time (ET), on May 21, 2009. To listen to the live conference call, please dial 877-941-2069 (within U.S.) or 480-629-9713 (outside U.S.) at 4:50 p.m. ET on May 21, 2009. An audio replay of the call will be available through May 23, 2009, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4069162#.

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(In US$'000, except share and per share data)

3/31/2009 12/31/2008
--------- ----------
Assets
Current assets
Cash and cash equivalents 184,382 255,523
Pledged bank deposits 114,358 83,383
Trade accounts receivable 187,157 94,733
Bills receivable 3,291 3,075
Inventories 548,812 616,901
Prepayments to suppliers, net 140,953 71,214
Other current assets 105,490 68,123
Deferred income tax assets, net 47,560 44,690
------ ------
Total current assets 1,332,003 1,237,642
Property, plant and equipment, net 1,968,828 1,697,203
Deposits for purchases of property, plant
and equipment
215,954 233,296
Intangible asset, net 1,001 1,037
Land use rights 111,192 99,162
Prepayments to suppliers expected to be
utilized beyond one year, net 32,702 33,617
Pledged bank deposits - non-current 49,918 49,686
Debt issuance costs, net 7,562 8,408
Investment in an associate 13,582 5,630
Deposits relating to sales and leaseback
transactions 7,314 7,316
Deferred income tax assets 375 375
--- ---
Total assets 3,740,431 3,373,372
--------- ---------

Liabilities and shareholders' equity
Current liabilities
Short-term bank borrowings and current
installments of long-term bank borrowings 972,294 666,200
Bills payable 94,009 11,406
Trade accounts payable 132,618 124,066
Advance payments from customers, current
portion 267,416 256,411
Accrued expenses and other payables 470,623 425,669
Due to a related party 2,193 4,359
Income tax payable 883 4,299
Other financial liabilities 18,783 18,545
------ ------
Total current liabilities 1,958,819 1,510,955
Convertible senior notes 400,000 400,000
Debt discount (12,875) (14,315)
Long-term bank borrowings, excluding
current installments 139,606 154,252
Obligations under capital leases,
excluding current installments 35,292 40,083
Advance payments from customers - non-current 441,866 487,577
Other liabilities 3,419 3,485
Deferred income tax liability 2,704 1,468
----- -----
Total liabilities 2,968,831 2,583,505
Shareholders' equity
Ordinary shares: US$0.10 par value;
499,580,000 shares authorized;
113,501,049 shares issued;
113,110,516 and 113,110,396
shares outstanding as of
March 31, 2009 and December 31, 2008,
respectively 11,311 11,311
Additional paid-in capital 468,541 464,101
Statutory reserve 29,676 29,676
Accumulated other comprehensive income 83,102 83,314
Retained earnings 178,970 201,465
------- -------
Total shareholders' equity 771,600 789,867
------- -------
Total liabilities and shareholders' equity 3,740,431 3,373,372
--------- ---------

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
(In US$'000, except per ADS data)

For the 3 Months Ended
---------------------------
3/31/2009 12/31/2008

Net sales 283,262 426,612
Cost of goods sold (278,339) (638,030)
-------- --------
Gross profit / (loss) 4,923 (211,418)
Selling expenses (702) (1,139)
General and administrative expenses (17,250) (34,965)
Research and development expenses (3,106) (4,114)
------ ------
Total operating expenses (21,058) (40,218)
------- -------
Loss from operations (16,135) (251,636)
Other income/(expenses):
Interest income 693 979
Interest expense and amortization of
discount on exchange notes and
convertible senior notes issuance costs (11,370) (9,662)
Foreign currency exchange (loss) /
gain, net (508) 4,950
Government subsidy 3,247 5,366
Change in fair value of prepaid forward
contracts - -
Others (61) 567
--- ---
Loss before income tax (24,134) (249,436)
Income tax benefit 1,639 30,473
----- ------
Net loss attributable to ordinary
shareholders (22,495) (218,963)
------- --------

Net loss per ADS, Diluted $(0.21) $(2.05)
------ ------

On January 1, 2009, LDK Solar adopted FSP No. APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement)" concerning convertible debt accounting. This rule requires restatement of prior periods to conform to current account.

About LDK Solar (NYSE: LDK - News)

LDK Solar Co., Ltd. is a leading manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK Solar's headquarters and 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.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the safe harbor provisions
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