Last quarter, LDK Solar
Thanks largely to a sequential leap of more than 50% in wafer capacity by quarter's end, sales in the period were up 89% over the first quarter. Not only did shipments rise, but selling prices lifted about 10% as well. This is a reflection of LDK's ability to pass on a portion of the rising cost of its key raw material, polysilicon.
Silicon costs lifted fully 25% from the prior quarter, which explains why gross margin continued to shimmy south. As with Yingli Green Energy
LDK's bottom-line boost looks the most fabulous of all, but there's a large nonrecurring item in the mix. Note the line "Change in fair value of prepaid forward contracts" on the income statement. That's a one-time adjustment to a share transaction related to LDK's convertible debt offering back in April. Back out that $60 million gain and you have slightly less of an earnings bonanza. Still, it was a quality quarter.
Also notable is LDK's entry into the upgraded metallurgical grade (UMG) silicon arena. Canadian Solar
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