06.28.00
After projecting a 30% decrease in earnings on sagging sales this year, The Dial Corporation announced a $26 million restructuring plan that will eliminate more than 100 jobs.The Scottsdale-based company is expecting a 30 percent drop in its earnings for the first half of this year and full-year earnings per share to be down 25 to 30 percent compared to 1999.
Net sales are also expected to decline approximately 6 percent in the second quarter of 2000 from the same period of 1999. Dial plans to consolidate its dry detergent production by closing its Bristol, Pa., plant. More than 100 employees at the plant will have to choose between transferring to a facility in St. Louis or resigning, said Cindy Demers, vice-president of corporate affairs.
"People are buying liquid detergents more than they are buying dry detergents so the need wasn't there anymore," she said. "We needed to take these steps to appeal to our consumers, to do what we need to do to make as much liquid (detergent) as we can."
The restructuring is expected to result in an annual savings of approximately $5 million. Dial's product line will not be affected by the restructuring, Demers said.
Net sales are also expected to decline approximately 6 percent in the second quarter of 2000 from the same period of 1999. Dial plans to consolidate its dry detergent production by closing its Bristol, Pa., plant. More than 100 employees at the plant will have to choose between transferring to a facility in St. Louis or resigning, said Cindy Demers, vice-president of corporate affairs.
"People are buying liquid detergents more than they are buying dry detergents so the need wasn't there anymore," she said. "We needed to take these steps to appeal to our consumers, to do what we need to do to make as much liquid (detergent) as we can."
The restructuring is expected to result in an annual savings of approximately $5 million. Dial's product line will not be affected by the restructuring, Demers said.