Dial Reports 2Q Sales Rose 3.9%

The Dial Corporation, Scottsdale, AZ, reported net income was $35.5 million for the second quarter ended June 28, versus net income of $33.4 million in the second quarter of 2002.

A special gain in the second quarter of 2002 totaled $2.2 million, and was associated with the previously dissolved joint venture with Henkel and from the sale of the company’s Mexico City facility, partially offset by a write down of fixed assets in its Guatemala facility.

Net sales in the second quarter of 2003 rose 3.9% to $332.5 million. Herbert M. Baum, The Dial Corporation chairman, president and chief executive officer, said, “Overall, we achieved favorable results for the second quarter in a challenging economic and retail environment.”

Mr. Baum continued, “Personal cleansing generated sales growth of 7.5% due to strong performance from Dial liquid hand soap and bodywash, offset in part by the continued decline of the bar soap segment. Laundry care posted a 1.7% decrease in sales against strong sales comparisons in the year ago period, despite continued growth in Purex liquid detergent. A 16.8% drop in dry detergent sales and increased promotional spending were primarily responsible for the overall decline in laundry care. Our air fresheners business was up slightly at 0.4% driven by our Super Odor Neutralizer spray and Universal Scented oil refill products, both of which were introduced in the third quarter of 2002.”

Net income for the six months ended June 28, 2003 rose to $65.2 million, compared to $15.0 million in the same period a year ago. Net sales for the first half of 2003 were up 4.9% to $644.9 million

Looking to the second half, the company currently expects energy and petroleum related costs, such as resin, fuel and natural gas, to continue to be higher than year ago levels. Mr. Baum noted, “Sales growth for the second half of 2003 currently is expected to moderate against higher comparisons in the second half of 2002. We are expecting sales growth in the range of 3% for the full year.”