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Dial issues warning
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June 28, 2000: 12:19 p.m. ET
Consumer products maker lowers earnings forecast; shares plummet 15%
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NEW YORK (CNNfn) - Dial Corp., a consumer products maker, said Wednesday it will miss earnings expectations by as much as 30 percent in 2000, marking the second time this year it has issued an earnings warning.
As recently as March, Dial (DL: Research, Estimates), the maker of Dial soaps, Purex detergents and Renuzit air fresheners, said its 2000 earnings and sales will be below last year's results, when it earned $1.17 per share. Earnings tracker First Call Corp. had forecast earnings for 2000 of $1.18 per share.
The company also disclosed a $26 million pretax charge to restructure
certain operations. Despite the difficulties, Dial Chairman and CEO Mal Jozoff said the company is confident. "We're taking steps to get back on track as fast as possible. This restructuring of our detergents manufacturing plants and specialty personal care logistics, plus our selling organizations in the U.S. and International, should make us more cost effective and efficient," he said.
Another consumer products maker, Procter & Gamble Co., recently warned its earnings for the remainder of its fiscal year will fall short of Wall Street expectations.
In late morning trading, Dial fell 2, or more than 15 percent, to 11-1/16. Procter & Gamble (PG: Research, Estimates) fell 1/4 to 55-3/8, Unilever NV (UL: Research, Estimates) eased 3/8 to 25-3/16, and Colgate-Palmolive Co. (CL: Research, Estimates) dropped 15/16 to 56. 
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Dial
Procter & Gamble
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