<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q


                     QUARTERLY REPORT PURSUANT TO SECTION 13
                     OF THE SECURITIES EXCHANGE ACT OF 1934




                   For the Quarterly Period Ended July 3, 1999
                         Commission file number 1-11793



                              THE DIAL CORPORATION
             (Exact Name of Registrant as Specified in its Charter)



          DELAWARE                                               51-0374887
(State or Other Jurisdiction of                               (I.R.S. Employer
 Incorporation or Organization)                              Identification No.)

      15501 NORTH DIAL BOULEVARD
      SCOTTSDALE, ARIZONA                                        85260-1619
(Address of Principal Executive Offices)                         (Zip Code)

Registrant's Telephone Number, Including Area Code (480) 754-3425

Indicate by check mark whether the registrant (1) has filed all Exchange Act
reports required to be filed by Section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days.

                              Yes X      No

The number of shares of Common Stock, $.01 par value, outstanding as the close
of business on August 12, 1999 was 102,251,573.
<PAGE>   2
PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

                              THE DIAL CORPORATION
                           CONSOLIDATED BALANCE SHEET
                        (000 omitted, except share data)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                  July 3,          December 31,
                                                                   1999                1998
                                                                -----------        ------------
<S>                                                             <C>                <C>
                          ASSETS

Current Assets:
  Cash and cash equivalents                                     $     5,259        $    12,405
  Receivables, less allowance of $7,014 and $7,378                   72,447             56,477
  Inventories                                                       170,231            155,441
  Deferred income taxes                                              15,017             13,156
  Other current assets                                                1,832              1,634
                                                                -----------        -----------

     Total current assets                                           264,786            239,113

Property and equipment, net                                         282,800            281,302
Deferred income taxes                                                73,352             82,227
Intangibles, net                                                    534,830            545,999
Other assets                                                         28,556             26,734
                                                                -----------        -----------
                                                                $ 1,184,324        $ 1,175,375
                                                                ===========        ===========

           LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Trade accounts payable                                        $    99,787        $   123,911
  Short-term borrowings                                               9,158             10,389
  Income taxes payable                                               19,844              9,685
  Other current liabilities                                          96,260            106,663
                                                                -----------        -----------

     Total current liabilities                                      225,049            250,648

Long-term debt                                                      305,624            280,223
Pension and other benefits                                          245,450            245,981
Other liabilities                                                     7,294              8,298
                                                                -----------        -----------
     Total liabilities                                              783,417            785,150
                                                                -----------        -----------

Stockholders' Equity:
  Preferred stock, $.01 par value, 10,000,000 shares
    authorized; no shares issued and outstanding                         --                 --
  Common stock, $.01 par value, 300,000,000 shares
    authorized, 105,137,786 and 104,355,018 shares issued             1,051              1,044
  Additional capital                                                486,158            450,767
  Retained income                                                   144,562            105,011
  Accumulated other comprehensive income                             (8,435)            (8,949)
  Unearned employee benefits                                       (141,571)          (129,111)
  Treasury stock, 2,868,961 and 1,176,082 shares held               (80,858)           (28,537)
                                                                -----------        -----------
     Total stockholders' equity                                     400,907            390,225
                                                                -----------        -----------
                                                                $ 1,184,324        $ 1,175,375
                                                                ===========        ===========
</TABLE>

See Notes to Consolidated Financial Statements.


                                       2
<PAGE>   3
                              THE DIAL CORPORATION
          STATEMENT OF CONSOLIDATED OPERATIONS AND COMPREHENSIVE INCOME
                      (000 omitted, except per share data)


<TABLE>
<CAPTION>
                                                            (Unaudited)
                                                           Quarter Ended
                                                      -------------------------
                                                       July 3,         July 4,
                                                        1999            1998
                                                      ---------       ---------
<S>                                                   <C>             <C>
Net sales                                             $ 430,312       $ 366,798
                                                      ---------       ---------

Costs and expenses:
   Cost of products sold                                211,251         185,861
   Selling, general and administrative expenses         164,563         136,185
                                                      ---------       ---------

                                                        375,814         322,046
                                                      ---------       ---------


Operating income                                         54,498          44,752

Interest and other expenses                               8,289           4,632
                                                      ---------       ---------


Income before income taxes                               46,209          40,120
Income taxes                                             16,776          14,513
                                                      ---------       ---------

NET  INCOME                                           $  29,433       $  25,607
                                                      =========       =========

NET INCOME PER SHARE -- BASIC                         $    0.30       $    0.26
                                                      =========       =========

NET INCOME PER SHARE -- DILUTED                       $    0.29       $    0.25
                                                      =========       =========

Weighted average basic shares outstanding                98,580          98,158
     Weighted average equivalent shares                   2,033           2,458
                                                      ---------       ---------
Weighted average diluted shares outstanding             100,613         100,616
                                                      =========       =========

NET INCOME                                            $  29,433       $  25,607
Other comprehensive income (loss) net of tax:
     Foreign currency translation adjustment                151            (172)
                                                      ---------       ---------
COMPREHENSIVE INCOME                                  $  29,584       $  25,435
                                                      =========       =========
</TABLE>

See Notes to Consolidated Financial Statements.


                                       3
<PAGE>   4
                              THE DIAL CORPORATION
          STATEMENT OF CONSOLIDATED OPERATIONS AND COMPREHENSIVE INCOME
                      (000 omitted, except per share data)


<TABLE>
<CAPTION>
                                                             (Unaudited)
                                                          Six Months Ended
                                                      -------------------------
                                                       July 3,         July 4,
                                                        1999            1998
                                                      ---------       ---------
<S>                                                   <C>             <C>
Net sales                                             $ 829,260       $ 701,820
                                                      ---------       ---------

Costs and expenses:
   Cost of products sold                                413,634         362,367
   Selling, general and administrative expenses         312,133         254,147
                                                      ---------       ---------

                                                        725,767         616,514
                                                      ---------       ---------


Operating income                                        103,493          85,306

Interest and other expenses                              16,647           9,386
                                                      ---------       ---------


Income before income taxes                               86,846          75,920
Income taxes                                             31,527          27,402
                                                      ---------       ---------

NET  INCOME                                           $  55,319       $  48,518
                                                      =========       =========

NET INCOME PER SHARE -- BASIC                         $    0.56       $    0.50
                                                      =========       =========

NET INCOME PER SHARE -- DILUTED                       $    0.55       $    0.48
                                                      =========       =========

Weighted average basic shares outstanding                98,660          97,908
     Weighted average equivalent shares                   2,087           2,384
                                                      ---------       ---------

Weighted average diluted shares outstanding             100,747         100,292
                                                      =========       =========

NET INCOME                                            $  55,319       $  48,518
Other comprehensive income (loss) net of tax:
     Foreign currency translation adjustment                385            (133)
     Minimum pension liability adjustment                   129             (17)
                                                      ---------       ---------
Other comprehensive income (loss)                           514            (150)
                                                      ---------       ---------
COMPREHENSIVE INCOME                                  $  55,833       $  48,368
                                                      =========       =========
</TABLE>

See Notes to Consolidated Financial Statements.


                                       4
<PAGE>   5
                              THE DIAL CORPORATION
                      STATEMENT OF CONSOLIDATED CASH FLOWS
                                  (000 omitted)


<TABLE>
<CAPTION>
                                                                (Unaudited)
                                                              Six Months Ended
                                                          ------------------------
                                                           July 3,         July 4,
                                                            1999            1998
                                                          --------        --------
<S>                                                       <C>             <C>
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net income                                                $ 55,319        $ 48,518
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation and amortization                             21,199          16,668
  Deferred income taxes                                      7,014           1,619
  Change in operating assets and liabilities:
   Receivables                                             (24,145)         (9,601)
   Inventories                                             (14,790)          1,007
   Trade accounts payable                                  (24,124)        (11,430)
   Other assets and liabilities, net                         5,415         (15,538)
                                                          --------        --------

Net cash provided by operating activities                   25,888          31,243
                                                          --------        --------

CASH FLOWS USED BY INVESTING ACTIVITIES:
Capital expenditures                                       (19,675)        (15,082)
Acquisition of business, net of cash acquired                6,046         (83,763)
Proceeds from sale of assets                                                10,053
                                                          --------        --------

Net cash used by investing activities                      (13,629)        (88,792)
                                                          --------        --------

CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Net change in long-term borrowings                          25,401          31,065
Common stock purchased for treasury                        (50,669)         (5,232)
Net change in short-term bank loans                         (1,231)            116
Dividends paid on common stock                             (15,768)        (15,712)
Cash proceeds from stock options                            14,687          12,594
Net change in receivables sold                               8,175          31,100
                                                          --------        --------

Net cash provided (used) by financing activities           (19,405)         53,931
                                                          --------        --------

Net decrease in cash and cash equivalents                   (7,146)         (3,618)
Cash and cash equivalents, beginning of year                12,405          10,089
                                                          --------        --------

CASH AND CASH EQUIVALENTS, END OF PERIOD                  $  5,259        $  6,471
                                                          ========        ========
</TABLE>

See Notes to Consolidated Financial Statements.


                                       5
<PAGE>   6
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A.  BASIS OF PREPARATION

The Consolidated Financial Statements of The Dial Corporation ("the Company")
include the accounts for the Company and all of its subsidiaries. This
information should be read in conjunction with the financial statements set
forth in The Dial Corporation Annual Report to Stockholders for the year ended
December 31, 1998.

Accounting policies utilized in the preparation of the financial information
herein presented are the same as set forth in the Company's annual financial
statements except as modified for interim accounting policies which are within
the guidelines set forth in Accounting Principles Board Opinion No. 28, "Interim
Financial Reporting." The interim consolidated financial statements are
unaudited. In the opinion of management, all adjustments, consisting of normal
recurring accruals, necessary to present fairly the financial position as of
July 3, 1999, the results of operations and cash flows for the quarters and six
months ended July 3, 1999 and July 4, 1998 have been included. Interim results
of operations are not necessarily indicative of the results of operations for
the full year.

At July 3, 1999, there were 105,137,786 shares of common stock issued and
98,329,154 shares outstanding. At July 3, 1999 and July 4, 1998, a total of
3,939,671 and 4,495,785, respectively, of the issued shares were held by the
Employee Equity Trust. At July 3, 1999 and July 4, 1998, a total of 2,868,961
and 329,071, respectively, shares were held in treasury by the Company. The
shares held in treasury at July 3, 1999 include 218,725 shares valued at $5.2
million purchased by the Company as part of a small shareholder
selling/repurchasing program executed during the first half of 1998 and
2,460,700 shares valued at $71.7 million as part of the Company's stock
repurchase program.

In June 1998, the FASB issued Statement of Financial Accounting Standards No.
133 "Accounting for Derivative Instruments and Hedging Activities" ("SFAS No.
133"). SFAS No. 133 requires all derivatives to be recorded on the balance sheet
at fair value and provides a comprehensive and consistent standard for the
recognition and measurement of derivatives and hedging activities. The Company
is studying the application of this new Statement. This Statement shall be
effective for annual periods beginning after June 15, 2000.

NOTE B.  ACQUISITION OF BUSINESS AND JOINT VENTURE

On April 20, 1999, the Company and Henkel KGaA ("Henkel") reached agreement to
establish a joint venture to develop and market a range of enhanced laundry
products in North America. The joint venture company, Dial/Henkel LLC ("the
Joint Venture"), is 50%-owned by the Company and 50%-owned by Henkel
Corporation, the U.S. subsidiary of Henkel, and is expected to have products in
the market by the end of 1999. The Company will account for its interest in the
Joint Venture using the equity method.

On August 4, 1999, the Joint Venture completed the purchase of the Custom
Cleaner home dry cleaning business of Creative Products Resources, Inc. and
expects to begin selling the products nationally later this year.

On September 14, 1998, the Company acquired Sarah Michaels, Inc. ("Sarah
Michaels"), a manufacturer and marketer of specialty bath and body care products
for a cash purchase price of $187.0 million. The


                                       6
<PAGE>   7
Sarah Michaels acquisition has been accounted for under the purchase method of
accounting. At July 3, 1999, $5.0 million remains in escrow pending final
valuation of certain assets and liabilities.

On July 1, 1998, the Company acquired The Freeman Cosmetic Corporation
("Freeman"), a manufacturer and marketer of natural skin care, hair care, bath,
body and foot care products for a cash purchase price of approximately $78.0
million. The cash purchase price for Freeman reflects a $6.0 million reduction
as a result of a net worth adjustment received by the Company in January 1999.

The Company continues to gather and analyze certain information required to
complete the allocation of the purchase price of the acquisition of Sarah
Michaels. Further adjustments to the allocation of the purchase price may arise
as a result of the finalization of the ongoing study.

The following unaudited pro forma combined condensed financial information for
the second quarter and first six months of 1998 includes the results of
operations for the Company and assumes the acquisition of Sarah Michaels and
Freeman were consummated at the beginning of 1998 along with adjustments which
give effect to events that are directly attributable to the transaction and are
expected to have a continuing impact. The unaudited pro forma combined condensed
financial information does not give any effect to any potential cost savings
which may arise from the consolidation of the acquisitions with the Company.

The unaudited pro forma combined condensed financial information does not
purport to represent the results of operations that would have actually resulted
had the purchases occurred on the indicated dates, nor should it be taken as
indicative of future results of operations.


<TABLE>
<CAPTION>
                                  Quarter ended        Six Months ended
                                  July 4, 1998           July 4, 1998
                                  -------------        ----------------
                                  (000 omitted, except per share data)
<S>                               <C>                  <C>
Net sales                          $  390,209             $  746,034
Operating income                       42,197                 83,037
Net income                             21,321                 42,772
Earnings per share - diluted       $     0.21             $     0.43
</TABLE>

NOTE C.  INVENTORIES

Inventories consisted of the following:


<TABLE>
<CAPTION>
                                   July 3,       December 31,
                                    1999             1998
                                 ----------      ------------
                                        (000 omitted)
<S>                              <C>             <C>
Raw materials and supplies       $   53,208       $   55,791
Work in process                       4,926            7,855
Finished goods                      112,097           91,795
                                 ----------       ----------
                                 $  170,231       $  155,441
                                 ==========       ==========
</TABLE>


                                       7
<PAGE>   8
NOTE D.  DEBT

Short-term debt at July 3, 1999 consisted of a $9,158,000 bank loan to the
Company's Argentinean subsidiary, Nuevo Federal. The loan is denominated in
Argentinean Pesos, bears interest at the bank's short-term rate (9% to 11% at
July 3, 1999) and reprices monthly. The loan is subject to call by the bank at
the end of each month.

Long-term debt consisted of the following:

<TABLE>
<CAPTION>
                                                                              July 3,     December 31,
                                                                               1999           1998
                                                                             --------     ------------
                                                                                  (000 omitted)
<S>                                                                          <C>          <C>
$200 million 6.5% Senior Notes due 2008, net of issue discount               $198,043       $197,938
Short-term bank borrowings supported by the long-term revolving Credit
    Agreement, with interest rates at July 3, 1999 ranging
    from 5.5% to 6%                                                           107,581         82,285
                                                                             --------       --------
     Total long-term debt                                                    $305,624       $280,223
                                                                             ========       ========
</TABLE>

On September 23, 1998, the Company completed a $200 million public offering of
6.5% Senior Notes due 2008. The proceeds of the debt financing were used to
repay outstanding bank borrowings used for the acquisitions of Freeman and Sarah
Michaels. The Indenture governing these Senior Notes imposes restrictions on the
Company with respect to, among other things, its ability to redeem the Senior
Notes, to place liens on certain properties and to enter into certain sale and
leaseback transactions.

In addition, long-term debt consists of short-term bank borrowings classified as
long-term because they are supported by the Company's $350 million long-term,
revolving Credit Agreement. At July 3, 1999, the Company had $350 million
available under the Credit Agreement. Borrowings under the Credit Agreement are
on a revolving basis under commitments available until August 15, 2002. The
interest rate applicable to bank borrowings under the Credit Agreement is, at
the Company's option, indexed to the bank prime rate or the London Interbank
Offering Rate ("LIBOR"), plus appropriate spreads over such indices during the
period of the Credit Agreement. The Agreement also provides for commitment fees.
Such spreads and fees will change moderately should the Company's debt ratings
change. During June 1999, the Company established a $350 million commercial
paper program, which will allow it to access the commercial paper market for
short-term borrowing needs. At July 3, 1999 there were no borrowings under the
commercial paper program.


                                       8
<PAGE>   9
NOTE E.  INCOME TAXES

Reconciliation between the statutory federal income tax rate of 35% and the
Company's consolidated effective income tax rate for the six months ended July
3, 1999 and July 4, 1998 is as follows:


<TABLE>
<CAPTION>
                                  July 3,      July 4,
                                   1999         1998
                                  ------       ------
<S>                               <C>          <C>
Federal statutory rate              35.0%        35.0%
Goodwill amortization                0.7          0.3
Foreign Sales Corp. benefit         (0.6)        (0.5)
State income taxes                   3.4          4.0
Other, net                          (2.2)        (2.7)
                                  ------       ------
Effective income tax rate           36.3%        36.1%
                                  ======       ======
</TABLE>


NOTE F.  SEGMENTS OF AN ENTERPRISE

For organizational, marketing and financial reporting purposes, the Company has
organized into three business segments: (i) Domestic Branded, (ii)
International, and (iii) Commercial Markets and Other. The segments were
identified based on the types of products sold, the customer base and method of
distribution.

Selected information as to the operations of the Company in different business
segments for the second quarter and first six months of 1999 and 1998 is set
forth below. The accounting policies and the basis of preparation of the
business segments are the same as those described in Note P to the audited
financial statements included in the Company's 1998 Annual Report to
Stockholders.

<TABLE>
<CAPTION>
                                       COMMERCIAL                                                  DISCONTINUED
                          DOMESTIC      MARKETS       TOTAL                           TOTAL         & DIVESTED
                          BRANDED      AND OTHER     DOMESTIC     INTERNATIONAL     CONTINUING       PRODUCTS        TOTAL
                        -----------   -----------   -----------   -------------     -----------    ------------   -----------
                                                                  (000 omitted)
<S>                     <C>           <C>           <C>           <C>               <C>            <C>            <C>
NET SALES:
  Quarter ended:
   July 3, 1999         $   365,143   $    19,219   $   384,362    $    45,950      $   430,312       $    --     $   430,312
   July 4, 1998             310,184        16,765       326,949         39,849          366,798                       366,798
  Six months ended:
   July 3, 1999             704,192        35,377       739,569         89,691          829,260                       829,260
   July 4, 1998             588,449        34,205       622,654         78,665          701,319           501         701,820

OPERATING INCOME:
  Quarter ended:
   July 3, 1999              46,877         2,654        49,531          4,967           54,498                        54,498
   July 4, 1998              39,520         2,059        41,579          3,173           44,752                        44,752
  Six months ended:
   July 3, 1999              89,613         4,980        94,593          8,900          103,493                       103,493
   July 4, 1998              77,224         3,356        80,580          4,784           85,364           (58)         85,306

ASSETS AT:
   July  3, 1999          1,038,226         9,711     1,047,937        136,387        1,184,324                     1,184,324
   December 31, 1998      1,034,425        10,005     1,044,430        130,945        1,175,375                     1,175,375
</TABLE>


                                       9
<PAGE>   10
NOTE G.  DISPOSITION OF ASSETS

In the first quarter of 1998, the Company received approximately $10.0 million
from the disposition of assets. The PUREX TOSS `N SOFT(R) brand and related
inventories were sold for approximately $5.3 million and a non-operating
manufacturing property was sold for $4.0 million. No gain or loss was realized
on the transactions.


                                       10
<PAGE>   11
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

COMPARISON OF THE SECOND QUARTER OF 1999 WITH THE SECOND QUARTER OF 1998

Net sales increased $63.5 million, or 17.3%, to $430.3 million in the second
quarter of 1999 from $366.8 million in the second quarter of 1998. This increase
resulted from strong growth in the PUREX(R) and RENUZIT(R) franchises which grew
at 15.3% and 23.8%, respectively, as well as contributions from Freeman and
Sarah Michaels. The Purex franchise instituted a price increase beginning in
January of 1999. Sales net of the Purex price increase improved 15.4% for the
quarter.

Domestic Branded net sales increased $55.0 million, or 17.7%, to $365.1 million
in the second quarter of 1999 from $310.1 million in the second quarter of 1998.
The increase in net sales resulted primarily from the inclusion of the Sarah
Michaels and Freeman acquisitions and sales growth in Purex, up 15.3%, and
Renuzit, up 23.8%. Domestic Branded sales net of the Purex price increase
improved 15.4% for the quarter.

International net sales increased $6.1 million, or 15.3%, to $46.0 million from
$39.9 million in the second quarter of 1998 primarily as a result of increased
sales in Argentina and Canada.

Commercial Markets and Other net sales increased $2.5 million, or 14.6%, to
$19.3 million in the second quarter of 1999 from $16.8 million in the second
quarter of 1998, primarily from sales of discontinued items.

Gross profit margin increased 1.6% to 50.9% in the second quarter of 1999 from
49.3% in the second quarter of 1998 resulting primarily from the Purex price
increase, continuing improvement in efficiencies in the manufacturing facilities
and favorable raw material prices. These improvements were partially mitigated
by increased sales of larger sizes within both DIAL(R) and Purex, which have
lower gross margins. Gross profit margin net of the Purex price increase was
50.1% for the second quarter of 1999.

Selling, general and administrative expenses for the second quarter of 1999
increased $28.4 million, or 20.8%, to $164.6 million from $136.2 million in the
second quarter of 1998. The increase was primarily due to higher marketing
expense to support core business-merchandising initiatives, new product launches
and core business advertising and amortization of goodwill and incremental
administrative expenses associated with the acquisition of Freeman and Sarah
Michaels.

Operating income in the second quarter of 1999 increased $9.8 million, or 21.8%,
to $54.5 million from $44.7 million during the second quarter of 1998. The
increase was primarily due to increased sales and gross margin improvements
partially offset by trade spending for slotting and feature price protection.

Interest and other expense increased $3.7 million, or 79.0%, to $8.3 million for
the second quarter of 1999 compared to $4.6 million in the second quarter of
1998. The increase was primarily due to increased debt to fund the Freeman and
Sarah Michaels acquisitions.


                                       11
<PAGE>   12
The Company's consolidated effective income tax rate for the second quarter of
1999 was 36.3%, up from 36.2% for the second quarter of 1998, primarily due to
nondeductible goodwill related to the Sarah Michaels acquisition.

Net income increased $3.8 million, or 14.9%, to $29.4 million in the second
quarter of 1999 from $25.6 million in the second quarter of 1998. The increase
was primarily due to increased sales and gross margin improvements, offset in
part by higher selling, general and administrative expenses and lower than
expected operating results of both Freeman and Sarah Michaels during their
integration into Dial, caused in part by the seasonality of Sarah Michaels'
business, which derives approximately 60% of its annual net sales in the fourth
quarter.

COMPARISON OF THE FIRST SIX MONTHS OF 1999 WITH THE FIRST SIX MONTHS OF 1998

Net sales increased $127.5 million, or 18.2%, to $829.3 million in the first six
months of 1999 from $701.8 million in the first six months of 1998. This
increase resulted primarily from strong growth in the Purex and Renuzit
franchises which grew at 17.4% and 31.0%, respectively, as well as contributions
from Freeman and Sarah Michaels. The Purex franchise instituted a price increase
beginning in January of 1999. Sales net of the Purex price increase improved
16.2% for the first six months.

Domestic Branded net sales increased $115.8 million, or 19.7%, to $704.2 million
in the first six months of 1999 from $588.4 million in 1998. The increase in net
sales resulted primarily from the inclusion of the Sarah Michaels and Freeman
acquisitions and sales growth in Purex, up 17.4%, and Renuzit, up 31.0%.
Domestic Branded sales net of the Purex price increase improved 17.3% for the
first six months of 1999 compared to 1998.

International net sales increased $11.0 million, or 14.0%, to $89.7 million from
$78.7 million in the first six months of 1998 primarily as a result of increased
sales in Argentina and Canada.

Commercial Markets and Other net sales increased $1.2 million, or 3.4%, to $35.4
million in the first six months of 1999 from $34.2 million in the first six
months of 1998, primarily from sales of discontinued items offset in part by
softness in pricing of sulfonate chemicals, glycerin and fatty acids.

Gross profit margin increased 1.8% to 50.1% in the first six months of 1999 from
48.4% in the first six months of 1998 resulting primarily from the Purex price
increase, continuing improvement in manufacturing efficiencies in the
manufacturing facilities and favorable raw material prices. Gross profit margin
improvements in the first half were offset in part by increased sales of larger
sizes within both Dial and Purex, which have lower gross margins. Gross profit
margin net of the Purex price increase was 49.3% for the first six months of
1999.

Selling, general and administrative expenses for the first six months of 1999
increased $58.0 million, or 22.8%, to $312.1 million from $254.1 million in the
first six months of 1998. The increase was primarily due to higher marketing
expense to support core business-merchandising initiatives, new product
launches, core business advertising and amortization of goodwill and incremental
administrative expense associated with the acquisition of Freeman and Sarah
Michaels.


                                       12
<PAGE>   13
Operating income in the first six months of 1999 increased $18.2 million, or
21.3%, to $103.5 million from $85.3 million during the first six months of 1998.
The increase was primarily due to increased sales and gross margin improvements.

Interest and other expense increased $7.3 million, or 77.4%, to $16.7 million
for the first six months of 1999 compared to $9.4 million in the first six
months of 1998. The increase was primarily due to increased debt to fund the
Freeman and Sarah Michaels acquisitions.

The Company's consolidated effective income tax rate for the first six months of
1999 was 36.3%, up from 36.1% for the first six months of 1998 primarily due to
nondeductible goodwill related to the Sarah Michaels acquisition.

Net income increased $6.8 million, or 14.0%, to $55.3 million in the first six
months of 1999 from $48.5 million in the first six months of 1998. The increase
was primarily due to increased sales and gross margin improvements, offset in
part by higher selling, general and administrative expenses and lower than
expected operating results of both Freeman and Sarah Michaels during their
integration into Dial, caused in part by the seasonality of Sarah Michaels'
business, which derives approximately 60% of its annual net sales in the fourth
quarter.

LIQUIDITY AND CAPITAL RESOURCES

The Company generated cash from operations of $25.9 million during the first
half of 1999 compared to cash generated of $31.2 million for the same period of
time in 1998. This decrease resulted primarily from higher inventory levels for
new products, recent acquisitions and an increase in accounts receivable to
support promotional programs primarily due to increased shipments in the latter
part of the quarter on our core franchises.

Capital expenditures for the first half of 1999 were $19.7 million versus $15.1
million for the comparable period in 1998. Capital spending in 1999 is expected
to approximate $55 million and will be concentrated primarily on equipment and
information systems that provide opportunities to reduce manufacturing, logistic
and administrative costs and address the Year 2000 issue. However, such plans
are dependent on the availability of funds, as well as identification of
projects with sufficient returns. As a result, there can be no assurance as to
the quantity and the type of capital spending in the future.

On July 1, 1998, the Company acquired Freeman for $78.0 million, which was
financed through short-term borrowings supported by the Company's long-term
Credit Agreement. The acquisition price reflects a $6.0 million reduction in the
purchase price for Freeman as a result of a net worth adjustment received by the
Company in January 1999.

On September 14, 1998, the Company acquired Sarah Michaels for $187 million,
which was financed through short-term borrowings supported by the Company's
long-term Credit Agreement.

On September 23, 1998, the Company completed a $200 million public offering of
6.5% Senior Notes due 2008. The proceeds of the debt financing were used to
repay outstanding bank borrowings used for the acquisitions of Freeman and Sarah
Michaels. The Indenture governing these Senior Notes imposes restrictions on the
Company with respect to, among other things, its ability to redeem the Senior
Notes, to place liens on certain properties and to enter into certain sale and
leaseback transactions.


                                       13
<PAGE>   14
The Company received approximately $10.0 million from the disposition of assets
during 1998, the majority of which resulted from two sales. The Purex TOSS `N
SOFT(R) brand and related inventories were sold for approximately $5.3 million
and a non-operating manufacturing property was sold for $4.0 million. No gain or
loss was realized on either of the transactions.

The Company's financing plan includes the sale of accounts receivable to
accelerate cash flow. During June 1999, the maximum amount of receivables that
could be sold under this plan was increased to $115.0 million. Accounts
receivable sold but not yet collected under this plan at July 3, 1999 and
December 31, 1998 was $98.2 million and 90.0 million respectively. Under the
terms of the plan, the Company retains the risk of credit loss on the
receivables sold.

The Company is also party to a $350.0 million revolving credit agreement (the
"Credit Agreement") with various banks. The Credit Agreement, which will
terminate on August 15, 2002, unless extended, contains certain covenants which
impose limitations on the Company with respect to, among other things, its
ability to place liens on property, its ability to merge, consolidate or
transfer substantially all its assets, its minimum net worth and the incurrence
of certain indebtedness. The Company had $350.0 million available under the
Credit Agreement at July 3, 1999. The Company, from time to time, makes
short-term bank borrowings that are supported by the Credit agreement. At July
3, 1999, the Company had $107.6 million aggregate principal amount of such
short-term borrowings outstanding. The bank borrowings are classified as
long-term debt because they are supported by the long-term Credit Agreement.

During June 1999, the Company established a $350 million commercial paper
program which will allow it to access the commercial paper market for short-term
borrowing needs. At July 3, 1999 there were no borrowings under the commercial
paper program.

As part of its business strategy, the Company routinely reviews and evaluates
the acquisition of domestic and international companies that market products
that are similar to the Company's product offerings. The Company may seek
additional debt and/or equity financing as necessary to fund any potential
acquisitions.

At July 3, 1999 and July 4, 1998, a total of 2,868,961 and 329,071,
respectively, shares were held in treasury by The Company. The shares held at
July 3, 1999 include 218,725 shares valued at $5.2 million purchased by the
Company as part of a small shareholder selling/repurchasing program executed
during the first quarter of 1998 and 2,460,700 shares valued at $71.7 million
purchased as part of the Company's stock repurchase program.

At July 3, 1999, the Company had approximately $88.4 million in net deferred tax
benefits. The realization of such benefits will require average annual taxable
income of approximately $16.2 million over the next 15 years. The Company's
average income before income taxes over the last three years was approximately
$112.3 million.

YEAR 2000 COMPLIANCE

         OVERVIEW

Many existing computer systems and software products, including several used by
Dial, are coded to accept only two digit entries in the date code field.
Beginning on January 1, 2000, these date code fields will need to accept four
digit entries to distinguish 21st Century dates from 20th Century dates. As a
result,


                                       14
<PAGE>   15
our date critical functions related to the year 2000 and beyond, such as sales,
distribution, manufacturing, purchasing, inventory control, trade promotion
management, planning and replenishment, facilities and financial systems, may be
materially adversely affected unless computer systems and embedded microchips in
manufacturing equipment are or become Year 2000 compliant. If we do not properly
assess, remediate and test our systems for Year 2000 issues, our operating
results, financial condition and relationships with critical business partners
could be materially adversely effected. In addition, Year 2000 problems
experienced by other entities could have a material adverse impact on our
operating results and financial condition.

In early 1997, Dial established a corporate-wide project team to oversee,
monitor and coordinate our Year 2000 efforts. Our Year 2000 project is organized
into five specific areas: (1) information technology applications, (2)
information technology infrastructure, (3) embedded systems, (4) business
partners and (5) contingency plans.

           INFORMATION TECHNOLOGY APPLICATIONS

We have completed our assessment of our information technology applications and
have identified 73 application systems that we believe are critical to
maintaining our domestic operations without disruptions that would have a
material adverse effect on our operating results and financial condition. Of
these 73 application systems, 60 have been remediated. We expect to have the
remaining critical information technology applications for our domestic
operations replaced or remediated by the end of the third quarter.

Our primary approach to remediation has been to replace non-compliant
application systems with application systems represented by vendors to be Year
2000 compliant. Through this replacement effort, our 73 critical application
systems are being replaced by 35 systems. In most cases, our testing of these 35
application systems consists of executing them with transaction dates beyond
December 31, 1999, as well as running the application system in an environment
in which the system date has been moved forward to a date beyond December 31,
1999.

Generally, our testing is less rigorous for newer applications represented to be
Year 2000 compliant. For example, in selected cases of newer application systems
that are represented by the vendor to be Year 2000 compliant, we have reviewed
the vendors' testing documentation and are testing the application system with
transaction dates beyond December 31, 1999, but will not run the application
system in an environment in which the system date has been moved forward to a
date beyond December 31, 1999. In other cases of newer application systems
that are represented by the vendor to be Year 2000 compliant, we have reviewed
the vendors' testing documentation and have determined that no further testing
is required. We have completed testing or have determined that testing is not
necessary for 16 of the application systems and believe that all 16 are Year
2000 compliant. We expect to complete our testing of the remaining critical
information technology applications for our domestic operations by the end of
the third quarter of 1999.

We also have identified and assessed 13 application systems consisting of 52
modules that we believe are critical to maintaining our international operations
(principally in Argentina, Guatemala, and Mexico). Of these 13 application
systems, eight systems comprising 46 modules have been replaced. The remaining
five are currently being remediated. We expect to complete replacement or
remediation of critical information technology application for our international
operations by the end of the third quarter of 1999. We have completed testing of
the eight replacement application systems mentioned above, and expect to


                                       15
<PAGE>   16
complete our testing of all critical information technology applications for our
international operations in the fourth quarter of 1999.

           INFORMATION TECHNOLOGY INFRASTRUCTURE

We have followed the same approach described above for our information
technology infrastructure, which includes computer and communications hardware
and related operating system software on which the information systems
applications operate. This equipment is in the process of being replaced or
upgraded to Year 2000 compliant versions. Approximately 88% of the critical
infrastructure equipment for our domestic and international operations and 90%
of such equipment for our international operations have been remediated. We
expect to complete remediation of our infrastructure equipment by third quarter
of 1999. As mentioned above, our testing is less rigorous for infrastructure
software/hardware represented by the manufacturer to be Year 2000 compliant. We
expect to complete testing of critical infrastructure equipment/software for our
domestic and international operations during the fourth quarter of 1999. We will
continue to monitor manufacturer revisions of Year 2000 infrastructure
compliance statements through the end of 1999 and will reassess the potential
impact on infrastructure equipment and operating systems as necessary.

           EMBEDDED SYSTEMS

We have identified 460 embedded systems that we believe are critical to
maintaining our domestic operations without disruptions that would have a
material adverse effect on our operating results and financial condition. Of
these 460 embedded systems, 442 have been remediated. We have completed testing
of 400 of these 442 embedded systems and believe that we will not experience any
Year 2000 issues with these 400 embedded systems. We expect to have all of the
critical embedded systems for our domestic operations remediated and tested, as
necessary, by the end of the third quarter of 1999.

We also have identified and assessed 50 embedded systems that we believe are
critical to maintaining our international operations without disruptions that
would have a material adverse effect on our international operating results. We
have completed remediation and testing of all of these embedded systems.

           BUSINESS PARTNERS

During 1998, we sent Year 2000 readiness surveys to 1,906 of our business
partners and received responses from 1,252 of these business partners. We
categorized responses as good, fair or poor based upon the information submitted
by the business partners and our ability to assess their Year 2000 readiness
from this information. Of these 1,252 responses, we determined that 913 were
good, 126 were fair and 213 were poor. We are continuing to follow up with those
business partners who we believe are critical to maintaining our domestic
operations.

We have identified 418 of our business partners as critical to maintaining our
domestic operations without disruptions that would have a material adverse
effect upon our operating results and financial condition. We have completed our
assessment of the Year 2000 readiness of our business partners. We will however,
continue to monitor the Year 2000 readiness of approximately 150 of these
critical business partners and evaluate the readiness of all new vendors
throughout 1999.

We believe that our business partners present a significant risk of disruption
to our operations due to our limited ability to influence their actions and to
estimate the level and impact of the lack of Year 2000


                                       16
<PAGE>   17
readiness throughout our extended supply chain. As part of our contingency
plans, we will identify alternatives to those business partners whom we believe
will not be prepared for Year 2000 problems.

We have had discussions concerning Year 2000 readiness with some of our largest
customers and continue to monitor their Year 2000 readiness statements. We
currently do not have any reason to believe that our largest customers are not
appropriately resolving their Year 2000 issues.

Our international facilities sent Year 2000 readiness surveys to 233 of our
critical business partners and received 167 good responses and 66 poor responses
from these business partners. We are continuing to follow up with the 66
business partners who submitted poor responses to assess their Year 2000
readiness. We believe that business partners, customers, governmental agencies
and utilities outside the United States are generally less aware of Year 2000
issues and less willing to provide information concerning their Year 2000
readiness. As a result, we currently believe that our international business
partners and customers, as well as the countries in which they operate, will be
less prepared for Year 2000 issues than our domestic business partners and
customers, and that this lack of Year 2000 readiness could have a material
adverse effect on our operating results.

           CONTINGENCY PLANS

We are developing contingency plans intended to mitigate possible disruptions in
our business operations that may result from Year 2000 issues and believe that
these plans will be substantially completed by the end of the third quarter of
1999. Our contingency plans may include implementing manual work processes and
hiring additional staff, securing alternate sources of supply, distribution and
warehousing, adjusting the timing of promotional programs, stockpiling raw,
packaging and promotional materials, and increasing inventory levels of finished
goods. We will continually update and revise our contingency plans for our
significant business partners and customers as we continue to assess their Year
2000 readiness. However, judgments regarding contingency plans - such as how to
develop them and to what extent - are subject to many variables and
uncertainties. As a result, there is no certainty that our contingency plans
will be sufficient to mitigate disruptions to our business resulting from Year
2000 issues and the failure of our contingency plans to mitigate any disruptions
could have a material adverse effect on our operating results and financial
condition.

We currently believe that the most reasonably likely worst case scenario
involves the potential failure of interfaces to and from our critical
information systems applications combined with the failure of critical business
partners to be Year 2000 compliant. We believe that the most reasonably likely
worst case scenario would result in a significant increase in our costs due to
remediation efforts and additional staffing to support business activities and
perform manual work processes around critical information systems applications,
as well as difficulties in procuring raw materials and meeting customer demand
for our products. If the most reasonably likely worst case scenario occurs, it
could have a material adverse effect on our operating results and financial
condition.

           COSTS

We are using both internal and external resources to complete our Year 2000
efforts. We incurred costs of $1.0 million in 1998 and currently are expected to
incur costs of $1.6 million in 1999. We also incurred capital costs of $10.8
million in 1998, $8.1 million for the first half of 1999 and are currently
expected to incur additional capital costs of $5.1 million during the second
half of 1999 to upgrade our information


                                       17
<PAGE>   18
technology systems. These expenditures will address Year 2000 compliance and are
expected to provide us with improved efficiencies and cost savings.

The costs of Dial's Year 2000 identification, assessment, remediation and
testing efforts and the dates on which we believe we will complete such efforts
are based upon management's best estimates, which were derived using numerous
assumptions regarding future events, including the continued availability of
certain resources, third-party remediation plans and other factors. There is no
certainty that these estimates will prove to be accurate and actual results
could differ materially from those currently anticipated. Specific factors that
could cause such material differences include the availability and cost of
personnel trained in Year 2000 issues, the ability to identify, assess,
remediate and test all relevant computer codes and embedded technology and
similar uncertainties. Although some of our agreements with manufacturers and
other suppliers contain indemnification provisions, we cannot give any assurance
that these indemnification arrangements will cover Dial's liabilities and costs
related to claims by third parties related to Year 2000 issues.

The above section entitled "Year 2000 Compliance," even if incorporated by
reference into other documents or disclosures, is a Year 2000 Readiness
Disclosure as defined under the Year 2000 Information and Disclosure Act of
1998.


                                       18
<PAGE>   19
PART II.  OTHER INFORMATION

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Company's Annual Meeting of Stockholders was held on June 3, 1999. The
stockholders elected the following persons to serve three-year terms as
Directors of the Corporation: Herbert M. Baum, Donald E. Guinn and Malcolm
Jozoff. The votes for and against (withheld) each nominee were as follows:

<TABLE>
<CAPTION>
NOMINEE                                                    VOTES FOR                     VOTES WITHHELD
-------                                                    ---------                     --------------
<S>                                                        <C>                           <C>
Herbert M. Baum                                            81,076,101                        441,832
Donald E. Guinn                                            81,068,489                        449,444
Malcolm Jozoff                                             80,962,307                        555,626
</TABLE>

Joy A. Amundson, Joe T. Ford, Thomas L. Gossage, Michael T. Riordan, Barbara S.
Thomas and Salvador M. Villar also continued as Directors following the meeting.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (A)      Exhibits

                  10(a).   Employment Agreement, dated May 11, 1999, between the
                           Company and Malcolm Jozoff.

                  10(b).   Change of Control Agreement, dated May 11, 1999,
                           between the Company and Malcolm Jozoff.

                  27.      Financial Data Schedule.

                  99.      Private Securities Litigation Reform Act of 1995 Safe
                           Harbor Compliance Statement for Forward-Looking
                           Statements.

         (B)      A Current Report on Form 8-K was filed on July 27, 1999,
                  relating to the Company's second quarter results.


                                       19
<PAGE>   20
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


The Dial Corporation
(Registrant)

August 17, 1999



/s/  Susan J. Riley
------------------------------------------------------
     Senior Vice President and Chief Financial Officer
     (Chief Accounting Officer and Authorized Officer)


                                       20
<PAGE>   21
                                 Exhibit Index

<TABLE>
<CAPTION>
                Number     Description
                ------     -----------
<S>                        <C>
                10(a).     Employment Agreement, dated May 11, 1999 between the
                           Company and Malcolm Jozoff.

                10(b).     Change of Control Agreement, dated May 11, 1999
                           between the Company and Malcolm Jozoff.

                27.        Financial Data Schedule.

                99.        Private Securities Litigation Reform Act of 1995 Safe
                           Harbor Compliance Statement for Forward-Looking
                           Statements.
</TABLE>