Chinese photovoltaic manufacturer LDK Solar has revised its revenue guidance for the second quarter to a new lower range of between $480m to $500m from its original estimate of $710m to $760m.
Wafer shipments for the period are now forecast to be in the region of between 410MW and 430MW from a previous expectation of between 500MW and 550MW, with module shipments with a capacity of 75MW to 80MW instead of 200MW to 220MW.
Gross margin for the period is now predicted to be only 1.5 per cent to two per cent, significantly down on the expected range of 22 per cent to 26 per cent.
For fiscal 2011 the company has now issued revenue guidance in the range of $2.5bn to $2.7bn, after having predicted the level to be between $3.5bn and $3.7bn. The company now thinks its gross margin for the year will be in the 15 per cent to 20 per cent range, down from an expected 24 per cent to 29 per cent.
LDK has said it will release fully audited figures for the second quarter at the end of this month.
It has been a tough year so far for solar companies with falling demand in Europe and an increase in global competition putting downward pressure on price and reducing the pool of deals available.
After years of consistent growth the majority of companies in the sector have released quarterly results below expectations. US company Evergreen Solar filed for bankruptcy earlier this week causing share prices of many businesses in the industry to tumble.
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