Dial CEO Expects Decision in August

Dial Corp. should make its long-awaited decision on whether to sell the company or take other actions by August, the company’s chief executive said on Wednesday. Herbert Baum said the decision will likely be made at a board of directors retreat in August. Baum became chairman and CEO at the same retreat in 2000, after the company had made three earnings warnings in the year, leading its stock to the lowest level in the company’s four-year history as a publicly traded company.

Shortly after taking office, Mr. Baum said management would decide by mid-2001 whether to sell the company, form a business alliance with a company of similar size, remain independent or sell parts of the company. Analysts have said that it could be difficult for Dial, with net sales of $1.6 billion in 2000, to compete affectively with consumer products giants like Procter & Gamble Co. which has almost $40 billion in annual sales. Dial sees sales of about $1.7 billion in 2001, with 3-5 percent annual growth after.

Selling most individual parts of the Scottsdale, Ariz.-based company does not seem a likely option now, because of tax ramifications, Mr. Baum said during a Merrill Lynch investors conference.

But the company is close to reaching a a decision for a sale or other strategic alternative for its disappointing specialty personal care business. Dial has already said it could take an after-tax charge of $150 million to $170 million to write down the units assets.