UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: January 27, 1998
THE DIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 51-0374887
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
15501 NORTH DIAL BOULEVARD
SCOTTSDALE, ARIZONA 85260-1619
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (602) 754-3425
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ITEM 5. OTHER EVENTS.
On January 27, 1998, the Company issued a press release relating to its
financial results for the fourth quarter of 1997 and the 1997 fiscal year, a
copy of which is filed herewith as Exhibit 99.
ITEM 7.
(C) Exhibits
(99) Press Release of the Company dated January 27, 1998.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE DIAL CORPORATION
January 27, 1998
\s\ Susan J. Riley
Susan J. Riley
Senior Vice President and Chief Financial Officer
EXHIBIT 99.
(LETTERHEAD OF THE DIAL CORPORATION)
Nancy Stern-Corporate Affairs
602.754.4090
Walter Rogers-Investor Relations
602.754.2386
DIAL'S FOURTH QUARTER NET INCOME ROSE 37% NET INCOME UP 28% IN 1997
SCOTTSDALE, AZ, JANUARY 27, 1998 - The Dial Corporation (NYSE/DL) today
reported a 37% improvement in net income for its fourth quarter ended January
3, 1998 due to higher sales, lower selling, general and administrative (SG&A)
expenses and improved gross margins. The Company posted fourth quarter net
income of $23 million, or $ .23 per share (diluted), versus net income of $17
million, or $ .18 per share (diluted), in the year-earlier quarter.
The sale of non-strategic brands in the third quarter of the year reduced
net sales growth to 4% in the quarter. Sales of continuing core businesses
improved 10% as a result of increased sales of Dial Soap, Purex Laundry
Detergent and Armour Star Canned Meats. Core business sales were augmented by
the recent acquisition of Nuevo Federal, a soap and laundry detergent
subsidiary in Argentina which was acquired in September.
Dial's fourth quarter operating income increased 98% to $45 million
behind solid revenue growth, lower SG&A and improved gross margins. The
Company's operating margin doubled to 12% from 6% in the same period a year
ago.
(more)
Page 2 "The fourth quarter performance, which completed our first full
year as an independent company, is further evidence that our strategic plan is
working," commented Malcolm Jozoff, Dial Chairman and Chief Executive Officer.
"Since the spin-off in August, 1996, we have consistently delivered strong net
earnings per share, quarter after quarter. Our steady, predictable growth
record gives us great confidence as we enter 1998."
- FISCAL YEAR NET INCOME UP 28% -
---------------------------------
For the fiscal year ended January 3, 1998, Dial's net income increased
28% to $84 million, or $ .89 per share (diluted), versus $65 million, or $ .72
per share (diluted), in the prior year before a $55 million restructuring
charge and spin-off transaction costs. Inclusive of the restructuring charge
and spin-off expenses, net income in 1997 improved 180%.
Net sales for the year declined 3% as a result of Dial's strategy of
divesting non-core brands. Sales from continuing businesses rose 6%, after
adjusting for a 15% price decline on Purex in 1996, due to increases of Dial,
Renuzit, Purex and Armour and growth in the Company's international markets.
Net sales improved 7% including the acquisition in Argentina. International
revenues improved 34% in the year, primarily due to strength in Canada and
Mexico and the acquisition in Argentina.
The Dial Corporation, headquartered in Scottsdale, AZ, is a leading
manufacturer and marketer of consumer products including Dial soaps, Purex
detergents, Renuzit air fresheners and Armour Star canned meats. Dial products
have been in the American marketplace for over 100 years.
End
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THE DIAL CORPORATION
SUMMARY OF RESULTS
(UNAUDITED)
In Millions (except per share information)
QUARTER ENDED FISCAL YEAR ENDED
-------------- --------------- ------------- --------------
JAN. 3, 1998 DEC. 28, 1996 JAN, 3, 1998 DEC. 28, 1996
-------------- --------------- ------------- --------------
<S> <C> <C> <C> <C>
Net Sales. . . . . . . . . . . . . . . . . . . . . . $ 362.8 $ 349.7 $ 1,362.6 $ 1,406.4
-------------- --------------- ------------- --------------
Costs and expenses:
Cost of products sold. . . . . . . . . . . . . . . 192.1 186.0 718.1 739.9
Writedown of discontinued product inventories 27.9
-------------- --------------- ------------- --------------
192.1 186.0 718.1 767.8
Selling, general and administrative expenses. . . 126.2 141.2 482.3 541.1
Restructuring charges and other asset writedowns 27.1
-------------- --------------- ------------- --------------
318.3 327.2 1,200.4 1,336.0
Operating income . . . . . . . . . . . . . . . . . . 44.5 22.5 162.2 70.4
Interest and accretion. . . . . . . . . . . . . . 7.1 6.9 28.2 23.0
Spin-off transaction costs 5.0
-------------- --------------- ------------- --------------
7.1 6.9 28.2 28.0
-------------- --------------- ------------- --------------
Income before income taxes . . . . . . . . . . . . . 37.4 15.6 134.0 42.4
Income taxes (benefit). . . . . . . . . . . . . . 14.8 (0.9) 50.3 12.5
-------------- --------------- ------------- --------------
Net income . . . . . . . . . . . . . . . . . . . . . $ 22.6 $ 16.5 $ 83.7 $ 29.9
============== =============== ============= ==============
EARNINGS PER SHARE
Net income per share-basic . . . . . . . . . . . . . $ 0.24 $ 0.18 $ 0.91 $ 0.33
============== =============== ============= ==============
Net income per share-diluted . . . . . . . . . . . . $ 0.23 $ 0.18 $ 0.89 $ 0.33
============== =============== ============= ==============
Basic shares outstanding . . . . . . . . . . . . . . 94.0 89.9 91.9 89.8
Equivalent shares . . . . . . . . . . . . . . . . 2.7 1.4 2.2 1.2
-------------- --------------- ------------- --------------
Diluted shares outstanding . . . . . . . . . . . . . 96.7 91.3 94.1 91.0
============== =============== ============= ==============
EXCLUDING 1996 RESTRUCTURING CHARGES AND
SPIN-OFF TRANSACTION COSTS
Operating income . . . . . . . . . . . . . . . . . . $ 44.5 $ 22.5 $ 162.2 $ 125.4
============== =============== ============= ==============
Net income . . . . . . . . . . . . . . . . . . . . . $ 22.6 $ 16.5 $ 83.7 $ 65.2
============== =============== ============= ==============
Net income per share-basic . . . . . . . . . . . . . $ 0.24 $ 0.18 $ 0.91 $ 0.73
============== =============== ============= ==============
Net income per share-diluted . . . . . . . . . . . . $ 0.23 $ 0.18 $ 0.89 $ 0.72
============== =============== ============= ==============
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THE DIAL CORPORATION
--------------------
SUMMARY BALANCE SHEETS
----------------------
(UNAUDITED)
-----------
In Millions
JANUARY 3, DECEMBER 28,
1998 1996
------------ --------------
<S> <C> <C>
ASSETS
Cash and cash equivalents . . . . . . $ 10.0 $ 14.1
Accounts receivable, net. . . . . . . 60.5 28.7
Inventories . . . . . . . . . . . . . 124.1 139.5
Deferred income taxes . . . . . . . . 25.2 61.4
Other current . . . . . . . . . . . . 7.2 4.1
------------ --------------
Current assets . . . . . . . . . 227.0 247.8
Property, plant and equipment, net. . 260.9 226.6
Intangibles, net. . . . . . . . . . . 331.5 325.7
Deferred income taxes . . . . . . . . 63.6 63.9
Other non-current . . . . . . . . . . 0.9 2.1
------------ --------------
Total assets . . . . . . . . . . $ 883.9 $ 866.1
============ ==============
LIABILITIES AND EQUITY
Accounts payable. . . . . . . . . . . $ 102.2 $ 91.3
Income taxes payable. . . . . . . . . 14.6 7.2
Other current liabilities . . . . . . 122.0 108.1
------------ --------------
Current liabilities. . . . . . . $ 238.8 $ 206.6
Long-term debt. . . . . . . . . . . . 84.4 269.5
Pension and other benefits. . . . . . 231.6 233.3
Other liabilities . . . . . . . . . . 9.0 16.0
------------ --------------
Total liabilities. . . . . . . . $ 563.8 $ 725.4
------------ --------------
Common stock, $.01 par. . . . . . . . 1.0 1.0
Additional capital. . . . . . . . . . 393.9 247.2
Retained income (deficit) . . . . . . 33.9 (20.3)
Unearned employee benefits and other. (108.7) (87.2)
------------ --------------
Total equity . . . . . . . . . . 320.1 140.7
------------ --------------
Total liabilities and equity . . $ 883.9 $ 886.1
============ ==============
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