UPDATE 3-LDK cuts margin view on silicon costs, shares fall

(Recasts; adds details from conference call)

By Nichola Groom

LOS ANGELES, May 12 (Reuters) - China's LDK Solar Co Ltd (LDK.N: Quote, Profile, Research, Stock Buzz) reported a quarterly profit on Monday that topped forecasts and raised its revenue outlook for the year, but the solar wafer maker cut its gross margin forecast due to soaring costs of a key raw material and its shares slid 5.8 percent.

LDK and other solar power companies have enjoyed rapid growth in the last year due to rising fossil fuel prices and concerns about global warming that have spurred demand for renewable energy sources.

At the same time, the industry is struggling with higher costs on polysilicon, the material that is used to transform sunlight into electricity.

On a conference call with analysts, LDK executives said they expected polysilicon prices to remain high over the next two quarters.

LDK said first-quarter net income was $49.8 million, or 45 cents per American Depositary Share, compared with $21.6 million, or 27 cents per ADS, a year ago.

The company in April had forecast earnings for the quarter of 40 cents to 44 cents per ADS. Wall Street analysts, on average, had expected earnings of 39 cents a share, according to Reuters Estimates.

Earlier on Monday, Chinese solar cell maker JA Solar Holdings Co (JASO.O: Quote, Profile, Research, Stock Buzz) posted a better-than-expected quarterly profit as revenue more than tripled.