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 3, 2001
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 January 3, 2001, the Company issued a press release relating to the
modification of its joint venture relationships in the United States and Mexico
with Henkel KGaA of Dusseldorf, Germany, 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
January 3, 2001
/s/ Conrad A. Conrad
Senior Vice President and Chief Financial Officer
EXHIBIT 99
STEPHEN BLUM - INVESTOR RELATIONS
(480) 754-5040
TOM HERRMANN - CORPORATE COMMUNICATIONS
(480) 754-2202
Dial/Henkel Joint Venture Changes
SCOTTSDALE, ARIZ. - JANUARY 3, 2001 - The Dial Corporation (NYSE:DL) and
Henkel KGaA of Duesseldorf, Germany today announced they have modified their
joint venture in the United States and have dissolved their joint venture in
Mexico.
Dial and Henkel will continue to own a limited U.S. joint venture equally;
however, the only business to be conducted by the joint venture going forward
will be the Custom Cleaner home dry-cleaning business. Dial will continue to
market, sell and distribute the Custom Cleaner products on behalf of the U.S.
joint venture. Dial has also terminated its license of the Purex trademark to
both the U.S. and Mexico joint ventures.
Dial sold its interest in the Mexico joint venture to Henkel for $18.9
million. The proceeds were used to pay down debt. Dial will record an
approximate $5 million loss as part of the previously announced restructuring.
Herbert M. Baum, chairman,president and CEO of The Dial Corporation
said today's announcement is part of a larger move by Dial to aggressively
improve performance and increase shareholder value. Baum re-evaluated the joint
venture's performance after assuming his position in August 2000. A month
later, Dial and Henkel decided to discontinue the Purex Advanced laundry
detergent business due to its lackluster performance and mounting losses being
recognized by both Henkel and Dial in conjunction with the business.
The Dial/Henkel joint venture was among several disappointing businesses
Baum cited in announcing a special pre-tax charge to earnings outlined to the
financial community on October 18, 2000, and taken in the second half of 2000.
"This move allows us to better focus our efforts and resources on our
strongest core brands and businesses," said Baum. "As part of our strategy to
stabilize and fix our businesses and explore options for the future, we must
either fix our unprofitable businesses or jettison them. This is but one step
in that process."
The Dial Corporation and Henkel KGaA formed the U.S. joint venture,
Dial/Henkel LLC, in April 1999 to introduce enhanced laundry products into the
North American marketplace, with Henkel providing technology and Dial providing
its Purex trademark and its manufacturing, and distribution infrastructure and
expertise.
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 Sarah Michaels and Freeman personal
care brands. Dial products have been in the American marketplace for more than
100 years. For more information about The Dial Corporation, visit the company's
web site at www.dialcorp.com.
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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 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.
