The World's #1 Renewable Energy Network for News, Information, and Companies.

Global Woes Continue with LDK Solar's Quarterly Earnings

China's LDK Solar became the latest company to detail symptoms of the drag caused by oversupply and falling subsidies as it reported mounting losses for the fourth quarter of fiscal 2011.

The world’s second largest maker of solar wafers turned in another quarterly loss, and the numbers show how difficult 2011 was compared to the previous year. According to its earnings report, LDK’s loss from operations for the fourth quarter of fiscal 2011 was $531.4 million. In the third quarter of 2011, it reported a loss from operations of $77.1 million. Those numbers pale in comparison to the company’s income from operations of $203.8 million for the fourth quarter of fiscal 2010.

The operating margin for the fourth quarter of fiscal 2011 was negative 126.5 percent compared to negative 16.3 percent in the third quarter of fiscal 2011, and positive 22.1 percent in the fourth quarter of fiscal 2010. LDK’s net sales were the fourth quarter were $420.2 million, less than half of the volume from the same period a year earlier.

The company cited many of the forces blamed for the recent struggles of key players in the global solar industry.

"The solar industry experienced a tremendous supply and demand imbalance throughout the value chain during the fourth quarter. Our results reflected the negative effects of this dislocation in the PV market," said CEO Xiaofeng Peng. "Weak market demand and rapidly declining average selling prices reduced our revenue and adversely impacted our margins in the quarter.

"In 2012, we expect that excess capacity and further policy uncertainties in Europe and the U.S. will result in continued intense competition within the solar industry. As such, we remain focused on improving our cost structure by driving down production costs and closely managing our operating expenses.”

In its conference call later in the day, LDK addressed how the losses are impacting its workforce, which peaked at about 28,000 employees in July of last year. The company now employs 19,195 workers, with about 5,500 of those cuts coming since the end of 2011.

Shares dropped sharply on the earnings news early Monday but rebounded strongly in late-day trading, pushing well past $3. In 2007, LDK shares reached a high of more than $75.

RELATED ARTICLES

Japan Microgrid

Born from Disaster: Japan Establishes First Microgrid Community

Junko Movellan, Correspondent Although Japan's Fukushima prefecture is most commonly associated with the 2011 disaster due to the nuclear power melt-down, Miyazaki prefecture, located north of Fukushima, suffered from the largest death toll, close to 10...
Renewable Energy Finance

Clean Energy ETFs Are on a Tear

Eric Balchunas, Bloomberg Green investing used to be synonymous with losing money. But while the S&P 500 Index is up 2 percent this year, and the MSCI All-Country World Index is up 5 percent, clean energy ETFs have double-digit re...

Wheels, Towers and Trees: Unconventional Renewable Energy Technologies in the Pipeline

Andrew Williams, International Correspondent A number of companies around the world are developing novel technologies in an effort to grab a slice of the global renewable energy market.  Although many of these technologies are simple incremental improvements to e...
UK Parliament Clean Energy Leaders

UK Government Names Clean Energy Cabinet Members

David Appleyard, Contributing Editor With the UK general election now over and a majority Conservative Party government in place, the re-elected Prime Minister David Cameron has now named key members of the government charged with steering the UK’s clean energ...
Renewable Energy World's network editors help deliver the most comprehensive news coverage of the renewable energy industries. Based in the U.S. and the UK, the team is comprised of editors from Pennwell Corporation's myriad of publications that ...

CURRENT MAGAZINE ISSUE

03/01/2015
Volume 18, Issue 3
file

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

EU PVSEC 2015 (European PV Solar Energy Conference and Exhibition)

The EU PVSEC is the largest international Conference for Photovoltaic re...

More Power, More Profit Tour - San Diego

Register for the SMA More Power, More Profit Tour for free, in-person sa...

More Power, More Profit Tour - Syracuse

Register for the SMA More Power, More Profit Tour for free, in-person sa...

COMPANY BLOGS

EU PVSEC 2014 extends its Scope

Added focus on application and policy topicsAbstracts for conference con...

EU PVSEC 2014: Call for Papers Receives Great Response

More than 1,500 contributions apply for presentation in AmsterdamScienti...

Helping Small Businesses Visualize Savings

    What does a small business owner care about? Most are run...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS