UPDATE 1-LDK Solar warns of Q4 loss, outlook gloomy
* LDK Solar warns of Q4 loss
* Plans to delay wafer, polysilicon expansion
* Shares dive 13 percent
LOS ANGELES, Feb 18 (Reuters) - China's LDK Solar (LDK.N) warned on Wednesday it will curtail expansion this year and lose $135 million to $145 million in the fourth quarter as wafer prices fell, sending its stock skittering 13 percent.
Makers of solar cells and modules have suffered in recent months as the global credit crisis dried up funding for new projects and the weak euro hurt margins for companies that sell into the European arena.
On Wednesday, Suntech Power (STP.N) said it lost $65.9 million in the fourth quarter. This week, Trina Solar (TSL.N) warned its margins would suffer due to writedowns on the value of its solar inventory, while Canadian Solar Inc (CSIQ.O) said it would ship fewer solar cells in 2009 than it had originally forecast. [ID:nWNAB4184]
LDK Solar, one of a crop of up-and-coming Chinese solar gear manufacturers, plans to delay wafer expansions by one quarter, meaning it will hit 2.0 gigawatts (GW) of solar wafer capacity by the end of 2009 instead of an original plan for 2.3 GW.
In terms of polysilicon production, the company plans to delay the installation of a 5,000 metric tonne (MT) production train to 2010. Another two new trains of identical size will be completed in the second quarter and second half of 2009, respectively.
Overall, the firm expects total polysilicon capacity to hit 12,000 MT by the end of 2009, down a quarter from a previous target of 16,000 MT.
LDK, which supplies wafers to solar product makers such as Suntech, now expects fiscal 2008 revenue of $1.63 billion to $1.64 billion, just shy of an average forecast of $1.649 billion according to Reuters Estimates.
It hopes to record shipments of between 810 and 820 MW in 2008, and net profit of $145 million to $155 million.
It said it will write down inventory by $210 million to $220 million in the fourth quarter.
LDK Solar promised to flesh out further details on its 2009 outlook when it unveils fourth-quarter results on March 11.
Its shares slid more than 13 percent after-hours from a regular close of $8.98 on Nasdaq. (Reporting by Edwin Chan; editing by Richard Chang) (eddie.chan@thomsonreuters.com; Tel: 1-213-955-6750; Reuters Messaging: eddie.chan.reuters.com@reuters.net) (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit topnews.session.rservices.com
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