NEW YORK (AP) — Chinese solar panel maker LDK Solar Co. Ltd. cut its forecast for third-quarter and full-year revenue far below Wall Street expectations because of weak prices for solar-energy equipment.
The company said Monday that rapidly falling prices for its products would cause it to write down $45 million to $50 million in inventories and produce a gross margin between negative 3.5 and 5 percent.
The Chinese manufacturer said it expects third-quarter revenue between $460 million and $470 million, down from $630 million to $680 million. Analysts were expecting $636.3 million.
For all of 2011, the company said revenue would be $2.2 billion to $2.25 billion, compared with a previous forecast of $2.5 billion to $2.7 billion. Analysts surveyed by FactSet expected $2.48 billion.
LDK also lowered forecasts for product shipments. The company said it will report third-quarter results before the market opens Sept. 30.
Solar-energy companies have been hurt by weak demand on cuts in subsidies, plus added competition that has led to production surpluses.
In regular trading before the update, LDK shares fell 9 cents, or 2.5 percent, to $3.53. In after-hours trading, after the company released its new outlook, the stock fell another 33 cents, or 9.4 percent, to $3.20.