LDK expects to profit on EU deal, domestic demand

LDK Solar Co, the Chinese solar-panel maker that's reported eight straight quarterly losses, expects to return to profit this year on domestic demand and as a tariff deal promises better sales in Europe.

The company, which is scheduled to report second-quarter earnings on Wednesday, started generating positive cash flow from selling wafers used in solar cells in June, President Tong Xingxue said in an interview.

"This is the first time in two years we witnessed obvious improvement," he said. "The market is steadily rising and our demand has exceeded supply.

The basic barrier to Europe has been overcome" and the domestic market is taking off, he said.