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: August 8, 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 August 8, 2000, Dial issued a press release announcing the resignations of
Malcolm Jozoff as Chairman, President and Chief Executive Officer, and Susan J.
Riley as Executive Vice President and Chief Financial Officer. The press
release also announced the appointment of Herbert M. Baum as Dial's new
Chairman, President and Chief Executive Officer, and Jack Tierney as acting
Chief Financial Officer.
The press release further announced that Dial would not meet the consensus
analyst earnings estimate of $0.77 for the fiscal year ending December 31,
2000.
A copy of the press release is attached as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(C) Exhibits
99. Press Release of the Company dated August 8, 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
August 8, 2000
/s/ John F. Tierney
Vice President and Controller and
acting Chief Financial Officer
EXHIBIT 99
CYNTHIA DEMERS - CORPORATE AND GOVERNMENT AFFAIRS
(480) 754-4090
BOB FULTON - INVESTOR RELATIONS
(480) 754-1016
GEORGE SARD/DEBBIE MILLER - CITIGATE SARD VERBINNEN
(212) 687-8080
DIAL BOARD NAMES OUTSIDE DIRECTOR HERBERT BAUM
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER
ACCEPTS RESIGNATIONS OF JOZOFF AND RILEY
COMPANY DOES NOT EXPECT TO MEET FY 2000 ANALYST EARNINGS EXPECTATIONS
BOARD BELIEVES NEW MANAGEMENT NEEDED TO ADDRESS OPERATING PERFORMANCE ISSUES
SCOTTSDALE, ARIZ., AUGUST 8, 2000 - The Board of Directors of The Dial
Corporation (NYSE:DL) today announced that Herbert M. Baum, President and Chief
Operating Officer of Hasbro, Inc. and a Dial outside director since 1997, has
been elected Chairman, President and Chief Executive Officer of Dial. Baum will
join Dial on August 14.
Baum is an accomplished consumer packaged goods executive with a broad
range of operating and marketing experience and a track record built over more
than 20 years of successfully growing leading brands at Hasbro, Quaker State,
and Campbell Soup.
Malcolm Jozoff, Dial's Chairman, President and Chief Executive Officer
since 1996, has resigned to pursue personal interests. Jozoff has also resigned
from the Dial Board, where he was the only inside director. The Board has also
accepted the resignation of Executive Vice President Susan J. Riley, who has
been Chief Financial Officer since 1997. Jack Tierney, Dial's Controller, has
been named acting Chief Financial Officer.
Dial does not expect to meet consensus analyst earnings estimates of $0.77
For the current fiscal year ending December 31, 2000
"The Board believes Dial's business is fundamentally sound, but in light of
deteriorating operating performance has concluded that new leadership is needed
to take full advantage of our world-class brands and rebuild credibility with
Dial's owners," said Joe Ford, an outside director since 1996, who is Chairman
and CEO of ALLTEL. "As a fellow director for the past three years, Herb Baum
knows the Company well, and the Board believes he has the ideal skill set and
experience to provide leadership to Dial's talented and dedicated work force and
restore acceptable financial performance."
"Getting Dial back on track will be a challenge, but I have a lot to work
with including superb brands, strong consumer appeal, growing market shares for
many of our products, good trade relations, a sound balance sheet, solid
management personnel and committed employees," said Baum. "With the Board's
support, I have already begun an intensive review of all aspects of Dial's
business. There will be no sacred cows, and we will do whatever we conclude
makes sense to create shareholder value. I intend to build a strong management
team, develop a realistic operating plan, and provide earnings guidance that can
be relied on as soon as possible."
Baum, 63, joined Hasbro in 1999 as President and Chief Operating Officer,
and he has been responsible for day-to-day management of all of Hasbro's
operating, marketing and sales activities for the past 18 months. Previously,
he spent six years as Chairman and Chief Executive Officer of Quaker State
Corporation before it was acquired by Pennzoil Products Company. During his
tenure, Quaker State's sales more than doubled and operating earnings grew
seven-fold. Under his leadership, Quaker State made eight acquisitions and
introduced many innovative consumer products, including the world's first
motor oil in a clear plastic bottle.
Baum had previously spent 15 years at Campbell Soup Company in increasingly
responsible senior positions including Executive Vice President and President of
Campbell North and South America. He launched Prego Spaghetti Sauce, Campbell's
first major new product introduction and today the second most popular sauce
brand. Campbell's famous advertising campaign, "Soup is Good Food'' was
launched when he led Campbell's U.S. soup business. Earlier in his career, he
worked at the Needham Harper & Steers advertising agency.
A graduate of Drake University, Mr. Baum serves on several Boards in
addition to Dial, including Midas, Inc., Meredith Corporation, and Whitman
Corporation. Formerly Chairman of the Association of National Advertisers and
The Advertising Council, he has won many awards, including The American
Marketing Association's Charles Coolidge Parlin Award for outstanding
contributions to marketing and the AMA's Edison Award for marketing innovation.
He was elected to the Sales and Marketing Executives International Hall of
Fame in 1998.
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, Freeman Cosmetics
and Nature's Accents personal care brands.
The Dial Corporation will host a conference call for analysts and investors
today at 9:00 a.m. EDT. The call can be accessed at 800-482-5543 (303-224-6998
outside the U.S.). A replay will be available from noon EDT today through
August 15, 2000 at 5 p.m. EDT and can be accessed at 800-625-5288 (303-804-1855
outside the U.S.), reservation number 784505.
FORWARD-LOOKING STATEMENTS
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 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.
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