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: October 18, 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 October 18, 2000, the Company issued a press release reducing its quarterly
dividend and announcing a special charge to be taken in the third and fourth
quarter of 2000. A copy of the press release is filed herewith as Exhibit 99.
ITEM 7.
(C) Exhibits
(99) Press Release of the company dated October 18, 2000.
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
October 18, 2000
/s/ Conrad A. Conrad
Senior Vice President and Chief Financial Officer
Exhibit 99
MEDIA RELATIONS - CYNTHIA A. DEMERS
(480) 754-4090
INVESTOR RELATIONS - STEPHEN BLUM
(480) 754-5040
Dial Board Reduces Quarterly Dividend
Outlines Special Charge
COMPANY COMFORTABLE WITH THIRD QUARTER EARNINGS ESTIMATES BEFORE SPECIAL CHARGE
SCOTTSDALE, ARIZ., OCTOBER 18, 2000 - The Dial Corporation (NYSE:DL) today
announced that its Board of Directors declared a quarterly dividend of $0.04 per
share, payable January 15, 2001, to the Company's stockholders of record at the
close of business on December 15, 2000. Previously, the Company had paid a
quarterly dividend of $0.08 per share on its common stock. The Company noted
that the Board felt this step was prudent in light of its previously announced
strategy to strengthen the balance sheet and accelerate the repayment of debt.
In addition, the Company announced a special charge associated with certain
underperforming businesses as publicly outlined to the financial community on
September 21, 2000, that will result in a pretax charge to earnings in the range
of $60-$70 million to be taken in the third and fourth quarters. The charge
relates to restructuring the
Specialty Personal Care business, the Dial/Henkel joint venture, and
Severance costs for prior management. A portion of this charge will be offset
by a $4.6 million pretax gain from changes to certain retiree medical plan
benefits.
These actions are expected to result in annual operating benefits of
approximately $10 million pretax and are expected to improve the Company's
operating efficiency. In addition, the Company said - excluding these charges -
it is comfortable with current third quarter and full-year earnings per share
estimates.
"We are aggressively working to improve performance and increase shareowner
value," said Herbert M. Baum, Chairman, President and CEO of Dial. "The
restructuring of our Specialty Personal Care business and our relationship with
Henkel will allow us to better focus our efforts and resources on our strong
core brands and businesses. Although we will be incurring charges associated
with this restructuring up front, we anticipate meaningful future financial
benefits."
"The dividend adjustment permits us to use a greater portion of our
earnings to accelerate the retirement of debt and improves our already strong
cash flow. These actions reflect our commitment to improve our core businesses
and should help contribute to greater shareowner value going forward," added
Baum.
The Dial Corporation 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 and Freeman
Cosmetics 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 the term
is defined by the Securities and Exchange Commission (SEC). Actual results
might differ materially from those projected in the forward-looking statements.
Factors that could cause actual results to materially differ from those in the
forward-looking statements are detailed in Dial's SEC filings.
Senior management will host a LIVE CONFERENCE CALL and REAL-TIME WEBCAST on
October 24, 2000, beginning at 1:00 p.m. Eastern Time and lasting approximately
45 minutes to discuss the Company's third quarter results and outlook for the
balance of fiscal 2000.
Access for the conference call and webcast is open to the press and general
public in a listen only mode. To access the conference call, please dial
1-952-556-2804. The webcast may also be accessed at www.streetfusion.com with
replays available shortly after the conclusion of the call at the same Web
address as well as by dialing 1-703-326-3020 and entering the ID code (for the
replay only) 4685688.
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