LDK Solar posts surprise Q3 profit

Domestic solar wafer manufacturer LDK Solar reported a surprise third-quarter profit Monday, Reuters reported. LDK announced a profit of US$0.27 per share, compared to an expected loss of US$0.10. The company also projected better-than-expected fourth-quarter sales of between US$280 and US$310 million. Analysts had earlier projected sales of US$258 million. The news comes after rival solar firms Suntech Power Holdings and Trina Solar also beat earnings expectations, claiming that demand for clean energy systems is on the rebound. However, LDK’s balance sheets remain a concern; it ended the third quarter with US$1.1 billion in current assets compared to US$2.45 billion in current liabilities. In addition, much of the surprise profit is attributed to US$14 million in government subsidies the company received, in addition to lower material costs.