There's never a dull moment when it comes to LDK Solar
LDK Solar's revenue clocked in at $282 million, while wafer shipments hit 320.5 megawatts. These figures both came in right around the midpoint of guidance, which was raised in late October. Gross margins bounced back to a hearty 20%, far more robust than the figures posted by single-digit midgets ReneSola
In its press release, the Chinese wafer slinger attributed its stronger financial results to an improvement in the solar market. The government giveaways that boosted LDK Solar's pre-tax income by 62% certainly didn't hurt. Looking forward, LDK sees growth across a wide range of end markets, driving an estimated 1.6 to 1.7 gigawatts of wafer and module shipments in 2010.
During the quarter, LDK Solar's working capital deficit (its current assets minus current liabilities) moved in the wrong direction, widening by $334 million. Net current liabilities increased to $1.35 billion at the end of September from $273 million at year-end 2008. This balance sheet is a bad boy -- not the sort you'd want to bring home to meet your folks at Thanksgiving.
Given its financial position, LDK Solar remains a speculative security. As AIG