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: March 10, 2000
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 (480) 754-3425
<PAGE>
ITEM 5. OTHER EVENTS.
On March 10, 2000, the Company issued a press release relating to its financial
earnings outlook for the first half of 2000, a copy of which is filed herewith
as Exhibit 99.
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
March 13, 2000
/s/Susan J. Riley
Executive Vice President and Chief Financial Officer
CYNTHIA DEMERS -- CORPORATE AND GOVERNMENT AFFAIRS
480.754.4090
BOB FULTON -- INVESTOR RELATIONS
480.754.1016
DIAL REVISES EARNINGS OUTLOOK FOR FIRST HALF OF 2000
SCOTTSDALE, ARIZ., MARCH 10, 2000 - The Dial Corporation (NYSE: DL) announced
today that it expects earnings per share for the first half of 2000 to be down
10-12 percent from a year ago. This represents a shortfall versus previous
guidance of approximately 20 percentage points. The Company believes that
certain events leading to these lower than expected earnings will impact both
sales and gross margin for the first and second quarters. Earnings estimates for
the second half of the year remain unchanged. The Company now expects total year
2000 earnings to grow in the range of 5-7 percent versus previous year, a
reduction of approximately 9 percentage points versus previous guidance.
Sales, as consolidated, are expected to be down about 3-5 percent in both
the first and second quarters of 2000 from the respective periods a year ago.
However, including the Dial/Henkel joint venture, sales are expected to be up
this year by 2-3 percent in the first half. For the full year, consolidated
sales are now expected to be up 3-4 percent, and approximately 10 percent
including the Dial/Henkel joint venture. The factors relating to the sales
shortfall are primarily:
- - The consolidation and balancing of inventory that occurred when Dial's
second largest customer converted from buying direct to buying through two
wholesalers;
- - The continuing price war in Argentina between two of the Company's
competitors in the premium segment of the detergent market affecting Dial's
value brand in the region;
- - A shortfall on the sale of Armour canned meats due to increased
Y2K-related retail inventory buildup at year's end, coupled with a price
increase taken by Dial in January that has not been matched by competition.
The gross margin in the first half will be impacted by the reduced overhead
absorption associated with the lower than expected sales volumes and the
increasing cost of petroleum that affects, among other things, transportation
and distribution expenses.
"We're extremely disappointed to announce that our first half results are
being adversely affected by these events," said Mal Jozoff, Dial Chairman and
CEO. "Any of them taken alone would not likely have materially impacted our
year. However, the concurrence of all of these events in the same period
compels us to reduce our estimates for the first half.
"We believe that the health of our core businesses is sound, as reflected
in our strong consumer take-away at retail and our robust new product
pipeline," continued Jozoff. "We plan to work through our short-term earnings
issues and remain optimistic that we can deliver our second half results as
planned. We are committed to delivering our long-term top - and bottom-line
growth targets."
The Dial Corporation, headquartered in Scottsdale, Ariz., is one of
America's leading manufacturers of consumer products, including Dial soaps,
Purex laundry detergents, Renuzit air fresheners, Armour Star canned meats, and
the Sarah Michaels, Freeman Cosmetics and Nature's Accents personal care brands.
Dial products have been in the American marketplace for more than 100 years.
Statements in this press release as to the Company's expectations, beliefs,
plans or predictions for the future are forward-looking statements, as that term
is defined by the U.S. Securities and Exchange Commission (SEC). Actual results
might differ materially from those projected in the forward-looking statements.
Information concerning factors that could cause actual results to materially
differ from those in the forward-looking statements is contained in the
Company's 1998 Annual Report on Form 10K, including the section entitled
"Management's Discussion and Analysis of Results of Operations and Financial
Condition," and in its 1999 Quarterly Reports on Form 10-Q for the fiscal
quarters ended April 3, July 3 and October 2. All of these reports have been
filed with the SEC. For a copy of these reports, please access the Company's
Web site at www.dialcorp.com or call the Dial Consumer Information Center at
1-800-528-0849.
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