NORITZ CORP.

Noritz Corporation faces limited profitability domestically but maintains stock levels due to large cash balances and management plans addressing them. Despite domestic struggles, equity affiliate Kangaroo's expected profitability rise boosts net profit forecasts relative to operating profit forecasts. Overseas investments aim to enhance production and profitability, with North America and Australia offsetting China's declines in sales, reflecting solid markets to sink investments in. » Mehr auf seekingalpha.com

Noritz's profits were down due to softer demand in the Japanese market and issues with its equity affiliate Kangaroo. The overseas business performed well, but the equity accounted loss from Kangaroo widened and the downsides of operating leverage in the domestic business led to steep profit declines. Noritz is unwinding cross-shareholdings, freeing up cash for investments, and has a stock with sufficient market support to allow for buybacks without running into problems with the TYO. » Mehr auf seekingalpha.com