LDK Solar backs forecasts as debt concerns weigh

LOS ANGELES (Reuters) - LDK Solar backed its first-quarter and full-year financial outlooks a day after announcing a delay in a planned debt offering that sent the Chinese solar company's shares down 10 percent.

The first-quarter forecast echoed a lowered view the company gave last month.

Solar company shares have suffered this year because a glut of solar panels is sending prices down fast, squeezing profit margins.

But the reiterated outlook did little to stem the sell-off of LDK shares. LDK's American Depositary shares were down 6.8 percent to $7.65 in early afternoon trading.

Earlier in the session, they fell more than 10 percent to their lowest level since September.

LDK has been planning to spin-off its operations that produce polysilicon, the key material used to make most solar modules, in an effort to cuts its debt of about $1.8 billion.

"With LDK likely in need of additional cash in 2011 and a poly plant spinout looking harder as pricing falls, we expect shares to remain under pressure," Wachovia analyst Sam Dubinsky said in a note to investors.

LDK said it still expects first-quarter revenue of $745 million to $755 million and gross margins of 30 to 31 percent.

For the full year, the company expects revenue of $3.5 billion to $3.7 billion and gross margins of 24 percent to 29 percent.

LDK plans to report its first-quarter results on June 7.

(Reporting by Nichola Groom in Los Angeles and Matt Daily in New York; Editing by Tim Dobbyn)