LDK Solar Lifts Revenue Outlook

LDK Solar (LDK), the Chinese maker of solar wafers, raised its shipment and revenue outlook for the third quarter. While LDK didn't specify a reason for hiking its guidance, there has been strong demand for solar products.

LDK expects to report revenue in the range of $610 to $640 million in the third quarter of 2010, up from a previous guidance of $570 to $600 million. Analysts, on an average, were expecting third quarter revenue of $580.6 million, according to Thomson Reuters.

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It also expects wafer shipments of 550 to 570 megawatts (MW), and module shipments of 80 MW to 90 MW. Up from previous guidance of wafer shipments of 520 to 550 MW, and module shipments of 75 to 85 MW.

Many expected demand for solar products to wane in 2011 as several EU countries, as well as the U.S., have allowed or will allow solar incentive programs to expire. However, other countries, with China among them, have increased solar incentives, brightening the 2011 demand picture somewhat. And recently, several companies have reported large deals, including last week's JA Solar (JASO) deal with BP (BP) Solar. In addition, First Solar (FSLR) has expanded 2011 deals in European markets.