LDK Solar shares fall after earnings miss expectations

Shares in China’s LDK Solar (NYSE.LDK, LD41.FRA) dropped 5.9% in New York on Tuesday after the company reported a first quarter loss, Bloomberg reported. The loss of US$1.46 per share was worse than analyst expectations of a US$1.14 loss per share. LDK, the world’s second largest maker of solar wafers, cited higher costs for producing polysilicon as well as falling prices for solar panels, components and materials for the loss of US$185.2 million. The firm said in a written statement it can make polysilicon for US$41 per kilogram, far higher than the market spot price of US$22.63. By comparison, China’s largest polysilicon company GCL Poly Energy Holdings (3800.HKG,  3GY.FRA) produces polysilicon for less than US$20 per kilogram. “Industrywide overcapacity continued and drove price declines across the entire solar supply chain, which significantly reduced our revenue and negatively impacted our margins,” said LDK Chairman and CEO Peng Xiaofeng in the statement.