Updated with recent stock movements.
XINYU CITY, China (
) -- There's no way to sugar coat this one. Another Chinese solar company bit the dust in the second quarter, this time due to a bigger-than-expected inventory write-down.
Tesla, FedEx, BlackBerry, Applovin, McAfee - 5 Things You Must Know
Investors weigh continued Fed support ahead of a batch of economic data; FedEx, Nike and BlackBerry report earnings; Tesla extends gains after stock has its best day in more than two months.
And investors are continuing to make
pay on Friday, sending shares down to $9.03 in morning trading, a drop of $2.20 from its Wednesday closing price of $11.23.
Wednesday, after the market close, LDK Solar reported a net loss of $216.9 million, or $2.03 per ADS, in the second quarter.
Results were impacted by what is now a somewhat familiar refrain in the solar industry: the plummeting market value for solar wafers in recent months forced LDK Solar to write-down $175.8 million in inventory, though there are signs that sector-wide demand has picked up of late.
That was off company projections in July when the solar concern said it expected a write-down between $150 million to $160 million. LDK Solar also included a $16.7 million loss on firm purchase commitments of polysilicon materials.
For a comparison, the company posted $149.5 million profit in the year-earlier quarter, or $1.29 per ADS.
Gross margins, which stood at 25.4% a year ago and came to 1.7% during the first quarter, fell through the floor this quarter in coming to negative 90%.
Revenues also fell in kind by 48% from the year-earlier period, landing at $228.3 million. Still, a 21% jump in wafer shipments remained a tiny bright spot.
A group of analysts polled by Thomson Reuters expected LDK Solar to lose 91 cents on $236.1 million in revenue.
"Our results for the second quarter of 2009 reflect the prevailing operational challenges for the solar industry," LDK Solar CEO Xiaofend Peng said in a particularly understated statement.
Peng added that recent encouraging signs for solar wafer demand and diversified growth opportunities in Europe leave the company feeling hopeful. Just last month, LDK Solar announced a deal to
build solar plants in Italy.
Though that upbeat language didn't stop LDK Solar from guiding third quarter revenues below many expectations, saying that sales should total between $240 million to $270 million.
joined LDK Solar in net loss-land.
ReneSola Solar and
JA Solar said revenue fell by over 50%, for each.
On the solar stock front,
was losing 97 cents, or 0.7%, at $144.02 in the afternoon.
( SPWRA) was down 2.2%, while
was slipping 7.3%.
-- Reported by Sung Moss in New York
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.