Dial’s Quarter Earnings Nearly Double

Dial Corp., Scottsdale, AZ, reported fourth-quarter net income nearly doubled from a year ago, boosted by strong sales of its personal cleansing, laundry and food products and improved profit margins. Net sales were up 6.2% for the quarter to $426.6 million. The maker of Dial soap and Purex laundry detergent said net income from continuing operations rose to $25.3 million, up from $12.7 million a year ago.

For the year, Dial executives reported net income rose 29.7% to $79.4 million. Executives also predicted strong earnings for 2002, not including the affect of currency devaluation in Argentina, which accounted for 8% of the company’s sales in 2001.

Since Dial chief executive officer Herbert Baum took office in 2000, the company has sold off weaker-performing businesses, worked to cut costs and eliminated lower-priced shipping to retailers at the end of the quarter to meet the company’s financial goals.

“Under our new management structure and through the hard work of all Dial employees, we’ve taken steps to build our core brands and deliver improved profitability,” said Mr. Baum.

Dial also put itself up for sale last August, as a smaller player in an ever-increasing consolidated industry. Interest was received for only parts of the business, not Dial as a whole, according to the company.

Dial said the lowering of some of its trade allowances and prices for certain personal care and laundry care products at the beginning of last year reduced some expenses and its sales, as well as raised its operating margins in the fourth quarter. Dial’s personal care business, including the Dial, Breck and Tone brands, increased 8.4% during the period, with notable results for body washes and liquid hand soap. The laundry care unit reported an 18.8% increase in sales.