LDK joins list of solar firms reporting sharp drop in revenue
Chinese solar company LDK Solar Co Ltd sharply lowered its third-quarter and full-year revenue outlooks due to rapidly falling prices for solar products, sending its shares down 9 percent, according to Reuters.
The company also said it would write down between USD45 million and USD50 million of inventories and would lose money in the third quarter.
A glut of production and swelling inventories of PV panels have driven down prices by about 40 percent so far this year, squeezing profits across the industry and pushing some manufacturers into bankruptcy.
With Monday’s announcement, LDK joins First Solar Inc, Trina Solar Ltd, Yingli Green Energy Holding Co Ltd and Renesola Ltd, among others, in cutting targets for the year.
LDK lowered its third-quarter revenue outlook by more than a quarter to USD460-USD470 million, from its earlier view of USD630-USD680 million.
For the full year, LDK cut its revenue view to USD2.20-USD2.25 billion, from USD2.5-USD2.7 billion earlier.
The company’s shares fell to USD3.20 in extended trade after closing at USD3.53 Monday on the New York Stock Exchange. The stock has lost 76 percent of its value since hitting a 52-week high of USD14.96 in February.