LDK Solar cuts outlook, shares slump

LDK Solar cuts outlook, shares slump

Stock Market Predictions

LOS ANGELES (Global Markets) - Chinese solar wafer maker LDK Solar Co Ltd (LDK.N) on Thursday sharply lowered its revenue and gross margin forecasts for the second quarter and full year due to a dramatic drop in the price of its products.

The company's shares fell nearly 11 percent in extended trade following the announcement.

The company said it expects second-quarter revenue of $480 million to $500 million, down from a prior view of $710 million to $760 million.

Gross margin for the quarter is expected to be between 1.5 percent and 2 percent. It has previously forecast gross margin of 22 percent to 26 percent for the period.

The company also said it would write down $55 million to $60 million of inventories.

Shipments of wafers and modules were also much lower than expected during the quarter, LDK said.

LDK shares dropped 10.8 percent to $5.86 in after-hours trade after closing at $6.57 on the New York Stock Exchange.

LDK will report second-quarter results on August 29.

(Reporting by Nichola Groom, editing by Matthew Lewis)