LDK Solar reports $517M loss in fiscal 4Q

Associated Press

NEW YORK (AP) -- LDK Solar Co. Ltd., which defaulted on a bond payment earlier this week, reported a $517 million loss in its fiscal fourth quarter as sales fell sharply.

The Chinese company said it was hurt by ongoing poor conditions in the solar industry, including overcapacity that has pushed prices lower. Solar subsidies have been slashed in Europe, hurting demand in that big market.

LDK said it would focus on emerging markets in China, Africa, India and the U.S., and on cutting production costs.

In premarket trading LDK shares fell 14 cents, or 13 percent, to 94 cents.

The net loss for LDK shareholders in the March quarter was $3.68 per share, compared with a loss a year ago of $4.63 per share.

The company took write-downs to cover weak prices for many of its products, on reduced value of assets, the sale of a subsidiary, and on loss of intangible assets.

Revenue dropped to $135.9 million from $420.2 million a year earlier.

LDK forecast that revenue in the first quarter of its new fiscal year would be $80 million to $100 million.

The company missed a $23.8 million bond payment due Monday because of a "temporary cash-flow shortage." It reached agreement with two bondholders to delay $16.6 million in payments and was in discussions regarding the balance.