Oops! LDK Solar is revising its estimates for the fourth quarter–again. In January, the company said it generated $425-$435 million for the fourth quarter on wafer shipments between 245 MW and 255 MW.
It corrected that assessment yesterday. LDK now thinks it will earn revenue in the range of $415 to $425 million on wafer shipments between 245 and 255 MW. The company also expects to write-downs of $210 to $220 million because the value of its inventories has dropped off.
The result is that gross margins will be negative and the company will have a loss of $135 to $145 million in Q4. For the full year 2008, LDK Solar estimates revenue of $1.63 to $1.64 billion, wafer shipments between 810 to 820 MW and net profit of $145 to $155 million.
As for its capital expenditure plans, they are much reduced. Here’s the full plan via the release:
- 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 Solar’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.