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| Company News |
February 18, 2009
LDK Solar Updates Outlook
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XINYU CITY, China and SUNNYVALE, Calif., February 18, 2009 ¨C LDK Solar Co., Ltd. (NYSE:LDK), a leading manufacturer of multicrystalline solar wafers, today provided an updated outlook for the fourth quarter of 2008 and select data for the year 2009. For the fourth quarter of 2008, LDK Solar now estimates revenue in the range of $415 to $425 million and wafer shipments between 245 and 255 MW. Additionally, LDK Solar expects to record write-downs of $210 to $220 million against the cost of inventories for a decline in net realizable value of inventories resulting from the rapid market price decline for solar wafers. As a result, the gross margin is expected to be negative and LDK Solar expects to report a loss of $135 to $145 million in the fourth quarter. For the full year 2008, LDK Solar estimates revenue in the range of $1.63 to $1.64 billion, wafer shipments between 810 to 820 MW and net profit of $145 to $155 million.
LDK Solar also provided an update to its plans for capacity expansion and capital spending for 2009.
- The Company will delay its wafer capacity expansion by one quarter and now expects to reach 2.0 GW wafer capacity at the end of 2009 versus its original plan of 2.3 GW.
- In its 15,000 MT polysilicon plant, LDK Solar will delay the installation of its third 5,000 MT train. The first 5,000 MT train is expected to reach mechanical completion at the end of the second quarter of 2009; the second 5,000 MT train is expected to reach mechanical completion during the second half of 2009; and the third 5,000 MT train is expected to reach mechanical completion in 2010.
- In LDK SolarĄ¯s small polysilicon plant, the Company expects to increase annualized polysilicon production capacity to 2,000 MT from 1,000 MT by end of 2009 in order to improve its production cost structure. Production of polysilicon in the small plant has been progressing well and is expected to reach full production capacity of the initial 1,000 MT in mid 2009.
- The combined annual production capacity for both plants is now expected to reach 12,000 MT versus its original plan of 16,000 MT by the end of 2009.
- LDK Solar will provide additional details of updated guidance for 2009 when it reports its Q4-08 and fiscal 2008 results.
LDK Solar currently expects to report full fourth quarter and fiscal year 2008 results on March 11, 2009 before the market opens. The Company will host a corresponding conference call and live webcast at 8:00 a.m. ET on the same day. To listen to the live conference call, please dial 800-366-7449 (within U.S.) or 303-228-2965 (outside U.S.) at 7:50 a.m. ET on March 11, 2009. An audio replay of the call will be available to investors through March 16, 2009, by dialing 800-405-2236 (within U.S.) or 303-590-3000 (outside U.S.) and entering the passcode 11126850#.
About LDK Solar
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 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 construction projects, including its polysilicon plants, 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 solar 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.
For more information contact:
Lisa Laukkanen
The Blueshirt Group for LDK Solar
lisa@blueshirtgroup.com
+1-415-217-4967
Jack Lai
Executive VP and CFO
LDK Solar Co., Ltd.
IR@ldksolar.com
+1- 408-245-8801
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