LDK Solar Co., Ltd. (NYSE: LDK), a Chinese manufacturer of solar wafers, reported that it’s 2Q08 earnings tripled, as it increased production.
Net income for the quarter was $149.5 million,
or $1.29 per diluted ADS, compared to net income of $49.8 million, or
$0.45 per diluted ADS for 1Q08.
Revenue for the quarter was $441.7 million, up 89.2% quarter-over-quarter.
Net sales for 2Q08 were $441.7 million,
up 89.2% from $233.4 million for the first quarter of fiscal 2008, and
up 345.9% year-over-year from $99.1 million for 2Q07.
The company’s total wafer shipments increased 60.8% to 191.7 megawatts (MW) during the quarter, and annualized wafer production capacity reached 880 MW by end of June.
"We experienced substantial revenue growth during the second quarter as our wafer capacity expansion exceeded our expectations," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "We were also pleased to introduce our first Nova wafers using Upgraded Metallurgical Silicon (UMG), which began shipping to certain customers, ahead of schedule during the quarter. Customer demand remains strong and we have signed nine long-term wafer supply agreements year-to-date, further diversifying our customer base. In response to our sales backlog, we are again raising our target annualized capacity to 1.2 GW by the end of 2008, 2.2 GW by the end of 2009 and 3.2 GW by the end of 2010."
For 3Q08, LDK Solar estimates its revenue will be in the range of $486 million to $496 million with wafer shipments between 210 MW to 220 MW. LDK Solar also updated its outlook for the full year of fiscal 2008. For the full year of fiscal 2008, LDK Solar currently estimates:
— Revenue to be in the range of $1.65 billion to $1.75 billion;
— Wafer shipments in the range of 750 MW to 770 MW;
— Gross margin in the range of 23% to 28%; and
— Annualized wafer production capacity to be 1.2 GW by the end of 2008.
About LDK Solar
LDK Solar Co., Ltd. is a manufacturer of solar wafers, which are the principal raw material used to produce solar cells. LDK Solar sells wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, LDK Solar provides wafer processing services to 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. Its office in the United States is located in Sunnyvale, California.
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