Lixil Group, the Japanese company that owns the American Standard brand of toilets, sinks and other bathroom fixtures, is seeing its profits go down the drain after the company reported accounting problems last week.
The Wall Street Journal reported Monday that Lixil found off-the-book loans at a German subsidiary, Joyou AG, which recently dismissed its chairman and the chairman’s son after the loans were uncovered. Lixil estimates the accounting snafus could force it to write off 66.2 billion yen, or about $532 million, in one-time losses.
Lixil now expects to record a profit of 3 billion yen, or about $23.9 million, a plunge of 86.4 percent from last year. Time to get out the plunger.