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 September 30, 2000

Commission file number 1-11793

THE DIAL CORPORATION

(Exact Name of Registrant as Specified in its
Charter)


|                                                                                          |  |                                                  
|----------------------------------------------------------------------------------------- |  | -------------------------------------------------
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|DELAWARE
	(State or Other Jurisdiction of
	Incorporation or Organization)                 |  | 51-0374887
	(I.R.S. Employer
	Identification No.)
|                                                                                         
|15501 NORTH DIAL BOULEVARD
	SCOTTSDALE, ARIZONA
	(Address of Principal Executive Offices) |  | 85260-1619
	(Zip Code)                           

(480) 754-3425

Registrants Telephone Number, Including
Area Code


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.

[X]  Yes     [   ]  No

The number of shares of Common Stock, $.01 par value,
outstanding as the close of business on October 28, 2000
was 94,925,660.



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---



PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

THE DIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

|                                     |                                                                                                         |                                   |           |              |           |   |           |          |         | 
|------------------------------------ | ------------------------------------------------------------------------------------------------------- | --------------------------------- | --------- | ------------ | --------- | - | --------- | -------- | ------- | 
|                                     |                                                                                                         | September 30,                     |           | December 31,
|                                     |                                                                                                         | 2000                              |           | 1999        
|                                     |                                                                                                         |                                   |           |             
|                                     |                                                                                                         | (Unaudited)                       |           |             
|                                     |                                                                                                         |                                  
|                                     |                                                                                                         | (in thousands, except share data)
|                                    
|                                    
|                                    
|                                    
|ASSETS                               |                                                                                                         |                                   |           |              |           |   |           |         
|                                    
|                                    
|                                    
|                                    
|Current Assets:                      |                                                                                                         |                                   |           |              |           |   |           |         
|                                    
|                                    
|                                    
|                                    
|                                     | Cash and cash equivalents                                                                               |                                   | $         | 6,537        |           |   | $         | 6,126    |        
|                                    
|                                    
|                                    
|                                    
|                                     | Receivables, less allowance of $5,350 and $7,994                                                        |                                   |           | 149,045      |           |   |           | 107,413  |        
|                                    
|                                    
|                                    
|                                    
|                                     | Inventories                                                                                             |                                   |           | 179,962      |           |   |           | 180,744  |        
|                                    
|                                    
|                                    
|                                    
|                                     | Deferred income taxes                                                                                   |                                   |           | 16,209       |           |   |           | 17,852   |        
|                                    
|                                    
|                                    
|                                    
|                                     | Other current assets                                                                                    |                                   |           | 18,401       |           |   |           | 20,369   |        
|                                     |                                                                                                         |                                   |           |              |           |   |           |         
|                                     |                                                                                                         | Total current assets              |           |              | 370,154   |   |           |          | 332,504 | 
|                                    
|                                    
|                                    
|                                    
|Property and equipment, net          |                                                                                                         |                                   | 297,174   |              |           |   | 306,585   |         
|                                    
|                                    
|                                    
|                                    
|Deferred income taxes                |                                                                                                         |                                   | 55,218    |              |           |   | 65,200    |         
|                                    
|                                    
|                                    
|                                    
|Intangibles, net                     |                                                                                                         |                                   | 617,908   |              |           |   | 524,745   |         
|                                    
|                                    
|                                    
|                                    
|Other assets                         |                                                                                                         |                                   | 68,075    |              |           |   | 40,652    |         
|                                     |                                                                                                         |                                   |           |              |           |   |           |         
|                                     |                                                                                                         | $                                 | 1,408,529 |              |           | $ | 1,269,686 |         
|                                     |                                                                                                         |                                   |           |              |           |   |           |         
|                                    
|                                    
|                                    
|                                    
|LIABILITIES AND STOCKHOLDERS EQUITY |                                                                                                         |                                   |           |              |           |   |           |         
|                                    
|                                    
|                                    
|                                    
|Current Liabilities:                 |                                                                                                         |                                   |           |              |           |   |           |         
|                                    
|                                    
|                                    
|                                    
|                                     | Trade accounts payable                                                                                  |                                   | $         | 127,468      |           |   | $         | 128,320  |        
|                                    
|                                    
|                                    
|                                    
|                                     | Short-term borrowings                                                                                   |                                   |           | 167,270      |           |   |           | 60,263   |        
|                                    
|                                    
|                                    
|                                    
|                                     | Income taxes payable                                                                                    |                                   |           |             |           |   |           | 29,931   |        
|                                    
|                                    
|                                    
|                                    
|                                     | Other current liabilities                                                                               |                                   |           | 111,268      |           |   |           | 99,600   |        
|                                     |                                                                                                         |                                   |           |              |           |   |           |         
|                                     |                                                                                                         | Total current liabilities         |           |              | 406,006   |   |           |          | 318,114 | 
|                                    
|                                    
|                                    
|                                    
|Long-term debt                       |                                                                                                         |                                   | 469,187   |              |           |   | 300,851   |         
|                                    
|                                    
|                                    
|                                    
|Pension and other benefits           |                                                                                                         |                                   | 220,447   |              |           |   | 232,586   |         
|                                    
|                                    
|                                    
|                                    
|Other liabilities                    |                                                                                                         |                                   | 6,943     |              |           |   | 6,864     |         
|                                     |                                                                                                         |                                   |           |              |           |   |           |         
|                                     |                                                                                                         | Total liabilities                 |           |              | 1,102,583 |   |           |          | 858,415 | 
|                                     |                                                                                                         |                                   |           |              |           |   |           |         
|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;
	105,679,849 and 105,480,645 shares issued |                                   |           | 1,057        |           |   |           | 1,055    |        
|                                    
|                                    
|                                    
|                                    
|                                     | Additional capital                                                                                      |                                   |           | 400,703      |           |   |           | 448,977  |        
|                                    
|                                    
|                                    
|                                    
|                                     | Retained income                                                                                         |                                   |           | 164,724      |           |   |           | 190,370  |        
|                                    
|                                    
|                                    
|                                    
|                                     | Accumulated other comprehensive income                                                                  |                                   |           | (3,488       | )         |   |           | (2,851   | )      
|                                    
|                                    
|                                    
|                                    
|                                     | Unearned employee benefits                                                                              |                                   |           | (43,124      | )         |   |           | (95,802  | )      
|                                    
|                                    
|                                    
|                                    
|                                     | Treasury stock, 10,754,129 and 4,887,176 shares held                                                    |                                   |           | (213,926     | )         |   |           | (130,478 | )      
|                                     |                                                                                                         |                                   |           |              |           |   |           |         
|                                     |                                                                                                         | Total stockholders equity        |           |              | 305,946   |   |           |          | 411,271 | 
|                                     |                                                                                                         |                                   |           |              |           |   |           |         
|                                     |                                                                                                         | $                                 | 1,408,529 |              |           | $ | 1,269,686 |         
|                                     |                                                                                                         |                                   |           |              |           |   |           |         

See Notes to Consolidated Financial Statements.

2



---



THE DIAL CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS AND COMPREHENSIVE
INCOME

|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |         |     |  
|--------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | --------------------------------------- | ------- | ---------- | -- | - | ------- | ------- | --- | -
|                                                                                              |                                                                                                         |                                        
|                                                                                              |                                                                                                         | Quarter Ended                          
|                                                                                              |                                                                                                         |                                        
|                                                                                              |                                                                                                         | September 30,                           |         | October 2,
|                                                                                              |                                                                                                         | 2000                                    |         | 1999      
|                                                                                              |                                                                                                         |                                         |         |           
|                                                                                              |                                                                                                         |                                        
|                                                                                              |                                                                                                         | (Unaudited)                            
|                                                                                              |                                                                                                         |                                        
|                                                                                              |                                                                                                         | (in thousands, except per              
|                                                                                              |                                                                                                         | share data)                            
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Net sales                                                                                     |                                                                                                         | $                                       | 411,149 |            |    | $ | 437,055 |        
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|Costs and expenses:                                                                           |                                                                                                         |                                         |         |            |    |   |         |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Cost of products sold                                                                                   |                                         |         | 214,787    |    |   |         | 220,094 |    
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Asset writedowns and discontinued product inventories as a
	result of restructuring and special charges |                                         |         | 31,266     |    |   |         |        |    
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|                                                                                              |                                                                                                         |                                         | 246,053 |            |    |   | 220,094 |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Selling, general and administrative expenses                                                            |                                         |         | 173,621    |    |   |         | 161,346 |    
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Special charges and other asset writedowns                                                              |                                         |         | 8,496      |    |   |         |        |    
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|                                                                                              |                                                                                                         |                                         | 182,117 |            |    |   | 161,346 |        
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|                                                                                              | Total costs and expenses                                                                                |                                         |         | 428,170    |    |   |         | 381,440 |    
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|Operating income (loss)                                                                       |                                                                                                         |                                         | (17,021 | )          |    |   | 55,615  |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Interest and other expenses                                                                   |                                                                                                         |                                         | (13,875 | )          |    |   | (8,004  | )      
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Net loss of joint ventures (including special charge of $11,495
	recorded in September, 2000) |                                                                                                         |                                         | (13,635 | )          |    |   | (390    | )      
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Other income  gain on special item                                                           |                                                                                                         |                                         | 4,583   |            |    |   |        |        
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|Income (loss) before income taxes                                                             |                                                                                                         |                                         | (39,948 | )          |    |   | 47,221  |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Income taxes (benefit)                                                                        |                                                                                                         |                                         | (13,782 | )          |    |   | 16,472  |        
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|NET INCOME (LOSS)                                                                             |                                                                                                         | $                                       | (26,166 | )          |    | $ | 30,749  |        
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|NET INCOME (LOSS) PER SHARE  BASIC                                                           |                                                                                                         | $                                       | (0.29   | )          |    | $ | 0.31    |        
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|NET INCOME (LOSS) PER SHARE  DILUTED                                                         |                                                                                                         | $                                       | (0.29   | )          |    | $ | 0.31    |        
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|Weighted average basic shares outstanding                                                     |                                                                                                         |                                         | 91,150  |            |    |   | 98,347  |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Weighted average equivalent shares                                                                      |                                         |         |           |    |   |         | 1,783   |    
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|Weighted average diluted shares outstanding                                                   |                                                                                                         |                                         | 91,150  |            |    |   | 100,130 |        
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|NET INCOME (LOSS)                                                                             |                                                                                                         | $                                       | (26,166 | )          |    | $ | 30,749  |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Other comprehensive income (loss) net of tax:                                                           |                                         |         |            |    |   |         |         |    
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              |                                                                                                         | Foreign currency translation adjustment |         |            | 30 |   |         |         | (14 | )
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        
|COMPREHENSIVE INCOME (LOSS)                                                                   |                                                                                                         | $                                       | (26,136 | )          |    | $ | 30,735  |        
|                                                                                              |                                                                                                         |                                         |         |            |    |   |         |        

See Notes to Consolidated Financial Statements.

3



---



THE DIAL CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS AND COMPREHENSIVE
INCOME

|                                                                                              |                                                                                                         |                       |           |            |   |   |           |           | 
|--------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | --------------------- | --------- | ---------- | - | - | --------- | --------- | 
|                                                                                              |                                                                                                         |                      
|                                                                                              |                                                                                                         | Nine Months Ended    
|                                                                                              |                                                                                                         |                      
|                                                                                              |                                                                                                         | September 30,         |           | October 2,
|                                                                                              |                                                                                                         | 2000                  |           | 1999      
|                                                                                              |                                                                                                         |                       |           |           
|                                                                                              |                                                                                                         |                      
|                                                                                              |                                                                                                         | (Unaudited)          
|                                                                                              |                                                                                                         |                      
|                                                                                              |                                                                                                         | (in thousands, except
|                                                                                              |                                                                                                         | per share data)      
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Net sales                                                                                     |                                                                                                         | $                     | 1,193,014 |            |   | $ | 1,266,315 |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|Costs and expenses:                                                                           |                                                                                                         |                       |           |            |   |   |           |          
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Cost of products sold                                                                                   |                       |           | 612,201    |   |   |           | 633,728   | 
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Asset writedowns and discontinued product inventories as a
	result of restructuring and special charges |                       |           | 48,498     |   |   |           |          | 
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|                                                                                              |                                                                                                         |                       | 660,699   |            |   |   | 633,728   |          
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Selling, general and administrative expenses                                                            |                       |           | 484,392    |   |   |           | 473,479   | 
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Restructuring and special charges and other asset writedowns                                            |                       |           | 12,331     |   |   |           |          | 
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|                                                                                              |                                                                                                         |                       | 496,723   |            |   |   | 473,479   |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|                                                                                              | Total costs and expenses                                                                                |                       |           | 1,157,422  |   |   |           | 1,107,207 | 
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|Operating income                                                                              |                                                                                                         |                       | 35,592    |            |   |   | 159,108   |          
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Interest and other expenses                                                                   |                                                                                                         |                       | (35,837   | )          |   |   | (24,651   | )        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Net loss of joint ventures (including special charge of $11,495
	recorded in September, 2000) |                                                                                                         |                       | (17,980   | )          |   |   | (390      | )        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Other income  gain on special items                                                          |                                                                                                         |                       | 11,245    |            |   |   |          |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|Income (loss) before income taxes                                                             |                                                                                                         |                       | (6,980    | )          |   |   | 134,067   |          
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Income taxes (benefit)                                                                        |                                                                                                         |                       | (3,441    | )          |   |   | 47,999    |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|NET INCOME (LOSS)                                                                             |                                                                                                         | $                     | (3,539    | )          |   | $ | 86,068    |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|NET INCOME (LOSS) PER SHARE  BASIC                                                           |                                                                                                         | $                     | (0.04     | )          |   | $ | 0.87      |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|NET INCOME (LOSS) PER SHARE  DILUTED                                                         |                                                                                                         | $                     | (0.04     | )          |   | $ | 0.86      |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|Weighted average basic shares outstanding                                                     |                                                                                                         |                       | 92,536    |            |   |   | 98,570    |          
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Weighted average equivalent shares                                                                      |                       |           |           |   |   |           | 2,074     | 
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|Weighted average diluted shares outstanding                                                   |                                                                                                         |                       | 92,536    |            |   |   | 100,644   |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|NET INCOME (LOSS)                                                                             |                                                                                                         | $                     | (3,539    | )          |   | $ | 86,068    |          
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Other comprehensive income (loss) net of tax:                                                 |                                                                                                         |                       |           |            |   |   |           |          
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Foreign currency translation adjustment                                                                 |                       |           | (392       | ) |   |           | 371       | 
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Minimum pension liability                                                                               |                       |           | (244       | ) |   |           | 129       | 
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|Other comprehensive income (loss)                                                             |                                                                                                         |                       | (636      | )          |   |   | 500       |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          
|COMPREHENSIVE INCOME (LOSS)                                                                   |                                                                                                         | $                     | (4,175    | )          |   | $ | 86,568    |          
|                                                                                              |                                                                                                         |                       |           |            |   |   |           |          

See Notes to Consolidated Financial Statements.

4



---



THE DIAL CORPORATION

STATEMENT OF CONSOLIDATED CASH FLOWS

|                                                                                          |                                                        |                                   |          |            |         |   |         |        |         |  
|----------------------------------------------------------------------------------------- | ------------------------------------------------------ | --------------------------------- | -------- | ---------- | ------- | - | ------- | ------ | ------- | -
|                                                                                          |                                                        |                                  
|                                                                                          |                                                        | Nine Months Ended                
|                                                                                          |                                                        |                                  
|                                                                                          |                                                        | September 30,                     |          | October 2,
|                                                                                          |                                                        | 2000                              |          | 1999      
|                                                                                          |                                                        |                                   |          |           
|                                                                                          |                                                        |                                  
|                                                                                          |                                                        | (Unaudited)                      
|                                                                                          |                                                        |                                  
|                                                                                          |                                                        | (in thousands)                   
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:                                              |                                                        |                                   |          |            |         |   |         |       
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Net income (loss)                                                                         |                                                        | $                                 | (3,539   | )          |         | $ | 86,068  |       
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Adjustments to reconcile net income (loss) to net cash
	provided by operating activities: |                                                        |                                   |          |            |         |   |         |       
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          | Depreciation                                           |                                   |          | 29,271     |         |   |         | 22,855 |        
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          | Amortization                                           |                                   |          | 9,858      |         |   |         | 9,060  |        
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          | Deferred income taxes                                  |                                   |          | 10,862     |         |   |         | 2,906  |        
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          | Restructuring and special charges and asset writedowns |                                   |          | 72,324     |         |   |         |       |        
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          | Gain on special items                                  |                                   |          | (11,245    | )       |   |         |       |        
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          | Change in operating assets and liabilities:            |                                   |          |            |         |   |         |        |        
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          |                                                        | Receivables                       |          |            | 33,154  |   |         |        | (50,242 | )
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          |                                                        | Inventories                       |          |            | (32,168 | ) |         |        | (20,334 | )
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          |                                                        | Trade accounts payable            |          |            | (2,916  | ) |         |        | (2,902  | )
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          |                                                        | Income taxes payable              |          |            | (43,847 | ) |         |        | 18,472  |  
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                          |                                                        | Other assets and liabilities, net |          |            | (3,736  | ) |         |        | (3,624  | )
|                                                                                          |                                                        |                                   |          |            |         |   |         |       
|Net cash provided by operating activities                                                 |                                                        |                                   | 58,018   |            |         |   | 62,259  |       
|                                                                                          |                                                        |                                   |          |            |         |   |         |       
|CASH FLOWS USED BY INVESTING ACTIVITIES:                                                  |                                                        |                                   |          |            |         |   |         |       
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Capital expenditures                                                                      |                                                        |                                   | (29,262  | )          |         |   | (34,508 | )     
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Investment in and loans to joint ventures                                                 |                                                        |                                   | (27,210  | )          |         |   |        |       
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Acquisition of businesses, net of cash acquired                                           |                                                        |                                   | (114,423 | )          |         |   | (1,954  | )     
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Proceeds from sale of facility                                                            |                                                        |                                   | 15,339   |            |         |   |        |       
|                                                                                          |                                                        |                                   |          |            |         |   |         |       
|Net cash used by investing activities                                                     |                                                        |                                   | (155,556 | )          |         |   | (36,462 | )     
|                                                                                          |                                                        |                                   |          |            |         |   |         |       
|CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:                                       |                                                        |                                   |          |            |         |   |         |       
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Net change in long-term borrowings                                                        |                                                        |                                   | 168,236  |            |         |   | (40,977 | )     
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Common stock purchased for treasury                                                       |                                                        |                                   | (83,254  | )          |         |   | (53,821 | )     
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Net change in short-term bank loans                                                       |                                                        |                                   | 107,107  |            |         |   | 46,500  |       
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Dividends paid on common stock                                                            |                                                        |                                   | (22,113  | )          |         |   | (23,636 | )     
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Cash proceeds from stock options                                                          |                                                        |                                   | 1,150    |            |         |   | 16,677  |       
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Net change in receivables sold                                                            |                                                        |                                   | (73,177  | )          |         |   | 24,975  |       
|                                                                                          |                                                        |                                   |          |            |         |   |         |       
|Net cash provided (used) by financing activities                                          |                                                        |                                   | 97,949   |            |         |   | (30,282 | )     
|                                                                                          |                                                        |                                   |          |            |         |   |         |       
|Net increase (decrease) in cash and cash equivalents                                      |                                                        |                                   | 411      |            |         |   | (4,485  | )     
|                                                                                         
|                                                                                         
|                                                                                         
|                                                                                         
|Cash and cash equivalents, beginning of year                                              |                                                        |                                   | 6,126    |            |         |   | 12,405  |       
|                                                                                          |                                                        |                                   |          |            |         |   |         |       
|CASH AND CASH EQUIVALENTS, END OF PERIOD                                                  |                                                        | $                                 | 6,537    |            |         | $ | 7,920   |       
|                                                                                          |                                                        |                                   |          |            |         |   |         |       

See Notes to Consolidated Financial Statements.

5



---



THE DIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1.  Basis of Preparation

The accompanying consolidated financial statements include the
accounts of The Dial Corporation and all majority-owned
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, 1999.

Accounting policies utilized in the preparation of the financial
information herein presented are the same as set forth in
Dial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 September 30, 2000 and the results of operations and
cash flows for the quarters and nine months ended
September 30, 2000 and October 2, 1999 have been
included. Interim results of operations are not necessarily
indicative of the results of operations for the full year.

Some statements contained in this Quarterly Report on
Form 10-Q may constitute forward-looking
statements within the meaning of The Private Securities
Litigation Reform Act of 1995. Words such as
believe, expect, intend,
anticipate, estimate,
project and similar expressions identify
forward-looking statements, which speak only as of the date the
statement was made. These forward-looking statements may
include, but are not limited to, projections of sales or net
income; issues that may affect sales or net income; projected
savings from restructuring or special charges or other items,
such as curtailment of our retiree medical benefits; projections
of capital expenditures; plans for our future, including the
discussion concerning SFX01; plans for new products;
and our financing needs.

Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified.
Future events and actual results could differ materially from
those set forth in, contemplated by, or underlying the
forward-looking statements. Statements in this Quarterly Report
on Form 10-Q, including the Notes to the Consolidated
Financial Statements and Managements Discussion and
Analysis of Results of Operations and Financial Condition,
describe factors, among others, that could contribute to or
cause such differences. Additional risk factors that could cause
actual results to differ materially from those expressed in such
forward-looking statements are set forth in Exhibit 99
which is attached as an exhibit and incorporated by reference
into this Quarterly Report on Form 10-Q. We do not
undertake any obligation to publicly update or revise any
forward-looking statements, whether as a result of new
information, future events, or otherwise.

Note 2.  Restructuring and Special Charges

Third Quarter 2000 Special Charges

On October 18, 2000, we announced a special charge
associated with certain businesses that will result in a pretax
charge to earnings in the range of approximately $60 to $70
million to be taken in the third and fourth quarters of 2000 and
the first quarter of 2001. The charge relates to the Specialty
Personal Care business, the Dial/ Henkel LLC joint venture, and
severance costs for prior management.

6



---



THE DIAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)

We recorded $48.7 million ($31.9 million after tax or $0.35 per
share) of this special charge during the third quarter of 2000.
The remaining charges currently are anticipated to be recorded
in the fourth quarter of 2000 and first quarter of 2001. The
pre-tax charges during the third quarter consist of the
following:

|                                                  |       |                |        |               |  |                |      |             |   |   |        |        |   |   |        |        | 
|------------------------------------------------- | ----- | -------------- | ------ | ------------- |  | -------------- | ---- | ----------- | - | - | ------ | ------ | - | - | ------ | ------ | 
|                                                  |       |                |        |               |  |                |      | Ending     
|                                                  |       |                |        | Cash spent    |  | Amount charged |      | reserves at
|                                                  |       | Total charges  |        | during period |  | against assets |      | 9/30/00    
|                                                  |       |                |        |               |  |                |      |            
|                                                  |       |               
|                                                  |       | (in thousands)
|                                                 
|                                                 
|                                                 
|                                                 
|Employee separations                              |       | $              | 2,960  |               |  | $              | (200 | )           |   | $ |       |        |   | $ | 2,760  |       
|                                                 
|                                                 
|                                                 
|                                                 
|Discontinued product inventories                  |       |                | 34,283 |               |  |                |     |             |   |   |       |        |   |   | 34,283 |       
|                                                 
|                                                 
|                                                 
|                                                 
|Joint venture  discontinuation of Purex Advanced |       |                | 11,495 |               |  |                |     |             |   |   | (5,416 | )      |   |   | 6,079  |       
|                                                  |       |                |        |               |  |                |      |             |   |   |        |        |   |   |        |       
|                                                  | Total |                | $      | 48,738        |  |                | $    | (200        | ) |   | $      | (5,416 | ) |   | $      | 43,122 | 
|                                                  |       |                |        |               |  |                |      |             |   |   |        |        |   |   |        |       

For income statement purposes, $29.0 million of the special
charge is included in Asset writedowns and discontinued
product inventories as a result of restructuring and special
charges, $8.2 million is included in Selling, general and
administrative expenses, and $11.5 million is included in
Net loss of joint venture. For segment reporting, $34.4
million of the charge is included in Specialty Personal Care,
$2.3 million is included in Domestic Branded, $0.4 million is
included in International and $0.1 million is included in
Commercial Markets & Other.

The employee separation charges in the third quarter of 2000
relate primarily to severance packages for prior executive
officers who left Dial in the third quarter. The charges were
recorded based on contractual agreements and were in accordance
with Dial policies. These costs have been allocated to our
various business segments based upon net sales of the respective
segments.

The discontinued product inventories relate to exiting the
Natures Accents and ISC private label soap businesses and
rationalizing the SKUs within our Sarah Michaels and
Freeman businesses. The charge to Costs of products soldconsists of recording finished goods and raw material
inventories at net realizable value. We expect to sell or
dispose of this inventory during the fourth quarter of 2000 and
first quarter of 2001. In addition, reserves were established to
fund promotional activity to our customers for discontinued
SKUs currently in our customers inventories and for
expected returns and deductions by our customers. This charge
was calculated based on the difference between the original
suggested retail price and the suggested discontinuation price
multiplied by the estimated related inventories held by our
customers. These costs are recorded in Selling, general and
administrative expenses. These reserves are expected to be
utilized by the first quarter of 2001.

See the discussion in note 4 regarding the charge recorded
related to the Dial/ Henkel LLC joint venture.

Cash requirements for the special charge currently are expected
to be funded from normal operations. As a result of the special
charges, we currently expect to realize projected annual pre-tax
operating benefits of approximately $10.0 million beginning in
2001. These benefits consist of savings from the Dial/ Henkel
LLC joint venture of approximately $6.0 million and reductions
in Selling, general and administrative expensesand
Cost of products soldtotaling approximately $4.0 million.

The expected timing and estimated amount of costs and projected
savings are based on managements judgment in light of
circumstances and estimates at the time the judgements were
made. Accordingly, such estimates may change as future events
evolve. Among other matters, unforeseen changes in operating
requirements and other factors referred to in Exhibit 99 to
this Form 10-Q could cause actual operating benefits to
differ materially from anticipated results. See Management
Discussion and Analysis of Results of Operations and Financial
Condition  Third Quarter 2000 Special Charges
for further discussion of this special charge.

7



---



THE DIAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)

Second Quarter 2000 Restructuring

On June 28, 2000, we announced a $26.0 million
restructuring charge ($17.0 million after tax or $.19 per share)
designed to improve profitability and operational efficiencies.
Specifically, the charge is to:



| |   |                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Close our Bristol, Pennsylvania, dry detergent plant. As a
	result, our dry detergent manufacturing is expected to be
	consolidated into our St. Louis plant by the first quarter of
	2001;                        
|
| |  | Consolidate each of the manufacturing and distribution functions
	of the Specialty Personal Care business, which resulted in
	discontinuation of certain formulations and inventory, and other
	one-time costs; and
|
| |  | Restructure domestic and international organizations, including
	our sales organization, as a result of acquisitions and changes
	in the business environment.                                                     

We recorded charges totaling $21.1 million ($13.8 million after
tax) during the quarter ended July 1, 2000, and recorded
additional charges totaling $2.5 million ($1.6 million after
tax) in the quarter ended September 30, 2000. Additional
charges of $2.4 million ($1.6 million after tax) are anticipated
in the fourth quarter of 2000 and the first quarter of 2001 as
the restructuring is completed. A summary of the reserves
relating to this restructuring charge is set forth below.

|                                                      |       |                |       |           |  |               |       |                |  |             |        |        |   |   |        |        |   |   |       |       | 
|----------------------------------------------------- | ----- | -------------- | ----- | --------- |  | ------------- | ----- | -------------- |  | ----------- | ------ | ------ | - | - | ------ | ------ | - | - | ----- | ----- | 
|                                                      |       | Beginning      |       |           |  |               |       | Amount         |  | Ending     
|                                                      |       | reserves       |       | Total new |  | Cash spent    |       | charged        |  | reserves at
|                                                      |       | at 7/1/00      |       | charges   |  | during period |       | against assets |  | 9/30/00    
|                                                      |       |                |       |           |  |               |       |                |  |            
|                                                      |       |               
|                                                      |       | (in thousands)
|                                                     
|                                                     
|                                                     
|                                                     
|Employee separations                                  |       | $              | 1,538 |           |  | $             | 2,065 |                |  | $           | (1,348 | )      |   | $ |       |        |   | $ | 2,255 |      
|                                                     
|                                                     
|                                                     
|                                                     
|Asset writedowns and discontinued product inventories |       |                | 8,643 |           |  |               | 454   |                |  |             |       |        |   |   | (4,934 | )      |   |   | 4,163 |      
|                                                     
|                                                     
|                                                     
|                                                     
|Other exit costs                                      |       |                | 845   |           |  |               |      |                |  |             | (12    | )      |   |   | 15     |        |   |   | 848   |      
|                                                      |       |                |       |           |  |               |       |                |  |             |        |        |   |   |        |        |   |   |       |      
|                                                      | Total |                | $     | 11,026    |  |               | $     | 2,519          |  |             | $      | (1,360 | ) |   | $      | (4,919 | ) |   | $     | 7,266 | 
|                                                      |       |                |       |           |  |               |       |                |  |             |        |        |   |   |        |        |   |   |       |      

For income statement purposes, $19.5 million of the
restructuring charge is included in Asset writedowns and
discontinued product inventories as a result of restructuring
and special charges and $4.1 million is included in
Selling, general and administrative expenses. For segment
reporting, $11.0 million of the charge is included in Domestic
Branded, $10.7 million is included in Specialty Personal Care
and $1.9 million is included in International.

The employee separation charges in the third quarter of 2000
relate to severance packages for 89 manufacturing employees in
the United States and 5 sales employees located in Argentina.
The employee separation charges in the second quarter of 2000
relate to severance packages for 164 people, primarily selling
and administrative employees in the United States, Mexico and
Argentina. The predominantly involuntary packages are based on
salary levels and past service and were recorded upon acceptance
of the package.

We recorded accelerated depreciation on the Bristol,
Pennsylvania plant in the third quarter for assets that will be
taken out of service prior to the end of their normal service
life. We changed the estimated useful lives of such assets,
resulting in accelerated depreciation. We will continue to
record accelerated depreciation for these assets through the end
of the fourth quarter. We will record additional exit costs
relating to the closure of our Bristol facility once estimates
are refined.

As a result of our consolidation of each of the manufacturing
and distribution functions and the discontinuance of certain
formulations and SKUs in our Specialty Personal Care business,
certain inventories, primarily raw materials, became unusable.
Accordingly, a charge was recorded in the second quarter to
Cost of products soldfor the difference between cost and
net realizable value. A reserve was established for inventories

8



---



THE DIAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)

not disposed of by July 1, 2000. We have disposed of a
portion of this inventory and expect to dispose of the remainder
in the fourth quarter of 2000 and first quarter of 2001.

Cash requirements for the restructuring currently are expected
to be funded from normal operations. As a result of the
restructuring charge, we currently expect to realize projected
annual pre-tax operating benefits of approximately $5.3 million
beginning in 2001. These benefits consist of reductions in
Cost of products soldof approximately $3.3 million and
in Selling, general and administrative expensesof
approximately $2.0 million.

The expected timing and estimated amount of costs and projected
savings are based on managements judgment in light of the
circumstances and estimates at the time the judgements were
made. Accordingly, such estimates may change as future events
evolve. Among other matters, unforeseen changes in operating
requirements and other factors referred to in Exhibit 99 to
this Form 10-Q could cause actual operating benefits to
differ materially from anticipated results. See Management
Discussion and Analysis of Results of Operations and Financial
Condition  Second Quarter 2000 Restructuring
for further discussion of this restructuring charge.

Note 3.  Acquisitions

During the third quarter of 2000, Dial received a $4.8 million
purchase price reduction related to the Sarah Michaels
acquisition in 1998. These funds were paid out of an escrow
account and were recorded as a reduction of goodwill.

During the second quarter of 2000, Dial acquired three
businesses for $118.6 million in cash. The acquisitions included
the Coastbar soap business in the United States,
the Plusbellehair care business in Argentina and
the Zoutstain remover business in the United
States. A portion of the purchase price for Zout is contingent
upon the achievement of a specified level of gross sales of the
Zout business in each of the three years following the
acquisition date.

The Coast, Plusbelle and Zout acquisitions were accounted for
using the purchase method of accounting. A portion of the
purchase prices have been allocated to assets acquired of $12.8
million and liabilities assumed of $1.3 million based on
estimated fair values at the date of acquisition while the
balance of $107.1 million was recorded as goodwill and will be
amortized over 40 years on a straight line basis. We
continue to gather and analyze certain information required to
complete the allocation of the purchase price of these
acquisitions. Further adjustments to the allocation of the
purchase price may arise as a result of the finalization of the
ongoing study.

The results of operations of the acquired businesses were
included in Dials consolidated results of operations from
their respective acquisition dates. The total combined net sales
of these acquisitions, since their respective acquisition dates
through the end of the third quarter was $38.3 million. Of this
amount, $26.9 million was recorded in the third quarter.

Note 4.  Dial/Henkel Joint Ventures

In March 2000, we formed a joint venture with Henkel KGaA
of Düsseldorf, Germany (Henkel) named Dial/
Henkel Mexico, S.A. de C.V. We own 49% of this joint venture and
Henkel owns 51%. This joint venture was formed primarily to
develop and market consumer detergent and household cleaning
products in Mexico. In May 2000, this joint venture
acquired 80% of Fabrica de Jabon Mariano Salgado S.A. de C.V.
(FJMS). Our portion of the investment in the joint
venture, which in turn was invested in FJMS by the joint
venture, was $18.4 million. Our portion of the net loss of the
joint venture has been included in Dials consolidated
results since the joint venture formation date.

In April 1999, we formed Dial/ Henkel LLC, a joint venture
with Henkel. Dial and Henkel each own 50% of this joint venture.
The joint venture was formed to develop and market a range of
enhanced laundry

9



---



THE DIAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)

products in North America, including Purex Advanced. In
July 1999, the joint venture acquired the Custom Cleaner
home dry-cleaning business.

During the third quarter of 2000, the Dial/ Henkel LLC joint
venture decided to discontinue operations of Purex Advanced. As
a result, Purex Advanced will be reflected as a discontinued
operation within the joint venture financial statements with all
current year operating losses prior to the measurement date,
which was September 29, 2000, reflected as Loss from
operations of discontinued Purex Advancedand additional
disposal costs recorded as Loss on disposal of Purex
Advanced. Dials portion of the Loss on disposal of
Purex Advancedrecorded as of September 30, 2000 was
$6.1 million. This charge consisted of recording inventory
at net realizable value and recording reserves for expected
returns and deductions by joint venture customers. In addition,
Dial recorded a charge of $5.4 million to write down the
fixed assets used in the manufacture of Purex Advanced to net
realizable value and record estimated disposal costs. As a
result of the above, Dial recorded a total special charge,
included in Net loss of joint ventures, relating to the
Dial/ Henkel LLC joint venture of $11.5 million for the period
ended September 30, 2000.

We anticipate recording additional charges in the fourth quarter
of 2000 and the first quarter of 2001 depending on the outcome
of our discussions with Henkel KGaA regarding the future of the
Dial/ Henkel joint ventures.

We account for our joint venture investments under the equity
method of accounting. The joint ventures results of
operations and our portion of the net losses of the joint
ventures are as follows:

|                                                                                              |                                                     |                    |         |                    |   |   |         |         |  
|--------------------------------------------------------------------------------------------- | --------------------------------------------------- | ------------------ | ------- | ------------------ | - | - | ------- | ------- | -
|                                                                                              |                                                     |                    |         | Nine Months       
|                                                                                              |                                                     | Quarter Ended      |         | Ended             
|                                                                                              |                                                     | September 30, 2000 |         | September 30, 2000
|                                                                                              |                                                     |                    |         |                   
|                                                                                              |                                                     |                   
|                                                                                              |                                                     | (in thousands)    
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Joint Ventures                                                                                |                                                     |                    |         |                    |   |   |         |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Net sales on continuing operations                                                            |                                                     | $                  | 14,324  |                    |   | $ | 29,027  |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Loss from continuing operations, before taxes                                                 |                                                     |                    | (634    | )                  |   |   | (11,015 | )      
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Net loss from continuing operations                                                           |                                                     |                    | (752    | )                  |   |   | (7,430  | )      
|Discontinued operations                                                                       |                                                     |                    |         |                    |   |   |         |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Loss from operations of discontinued Purex Advanced |                    |         | (9,325             | ) |   |         | (27,720 | )
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Loss on disposal of Purex Advanced                  |                    |         | (11,359            | ) |   |         | (11,359 | )
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Net loss of Joint Ventures                                                                    |                                                     |                    | (21,436 | )                  |   |   | (46,509 | )      
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Dial                                                                                          |                                                     |                    |         |                    |   |   |         |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|Net loss from continuing operations                                                           |                                                     |                    | (370    | )                  |   |   | (3,707  | )      
|Discontinued operations                                                                       |                                                     |                    |         |                    |   |   |         |        
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Loss from operations of discontinued Purex Advanced |                    |         | (1,770             | ) |   |         | (2,778  | )
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Loss on disposal of Purex Advanced                  |                    |         | (6,079             | ) |   |         | (6,079  | )
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                              | Write-down of fixed assets                          |                    |         | (5,416             | ) |   |         | (5,416  | )
|                                                                                              |                                                     |                    |         |                    |   |   |         |        
|Net loss of joint ventures (including special charge of $11,495
	recorded in September, 2000) |                                                     | $                  | (13,635 | )                  |   | $ | (17,980 | )      
|                                                                                              |                                                     |                    |         |                    |   |   |         |        

The Dial/ Henkel LLC agreements provide for a monthly marketing,
sales and administrative fee, a trademark fee, and a tolling fee
to be paid to us. A monthly technology fee is paid to Henkel.
These fees are based on net sales of the joint venture. However,
the tolling fee is based on cost of goods manufactured by us for
the joint venture. In addition, through November 2000, Henkel is
obligated to pay a disproportionate share of the marketing
expenses for Purex Advanced.

10



---



THE DIAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)

Included on Dials consolidated balance sheets are the
following:

|                                          |  |                |        |              |  |   |        | 
|----------------------------------------- |  | -------------- | ------ | ------------ |  | - | ------ | 
|                                          |  | September 30,  |        | December 31,
|                                          |  | 2000           |        | 1999        
|                                          |  |                |        |             
|                                          |  |               
|                                          |  | (in thousands)
|                                         
|                                         
|                                         
|                                         
|Investment in and loans to joint ventures |  | $              | 36,677 |              |  | $ | 10,464 | 
|                                         
|                                         
|                                         
|                                         
|Amount due (to)/from joint ventures       |  |                | (819   | )            |  |   | 10,855 | 

Dial incurs the cost to manufacture the Dial/ Henkel LLC
products and bills the joint venture monthly for the costs
incurred. This is labeled as Amount due from joint ventureand is included in Other current assetson
Dials consolidated balance sheet.

Note 5.  Inventories

Inventories consisted of the following:

|                           |                   |                |         |              |  |   |         |         | 
|-------------------------- | ----------------- | -------------- | ------- | ------------ |  | - | ------- | ------- | 
|                           |                   | September 30,  |         | December 31,
|                           |                   | 2000           |         | 1999        
|                           |                   |                |         |             
|                           |                   |               
|                           |                   | (in thousands)
|                          
|                          
|                          
|                          
|Raw materials and supplies |                   | $              | 56,950  |              |  | $ | 51,127  |        
|                          
|                          
|                          
|                          
|Work in process            |                   |                | 8,303   |              |  |   | 9,712   |        
|                          
|                          
|                          
|                          
|Finished goods             |                   |                | 114,709 |              |  |   | 119,905 |        
|                           |                   |                |         |              |  |   |         |        
|                           | Total inventories |                | $       | 179,962      |  |   | $       | 180,744 | 
|                           |                   |                |         |              |  |   |         |        

Note 6.  Debt

Short-term debt consisted of the following:

|                                                                                                                                                                                                        |                       |                |         |              |  |   |        |        | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- | -------------- | ------- | ------------ |  | - | ------ | ------ | 
|                                                                                                                                                                                                        |                       | September 30,  |         | December 31,
|                                                                                                                                                                                                        |                       | 2000           |         | 1999        
|                                                                                                                                                                                                        |                       |                |         |             
|                                                                                                                                                                                                        |                       |               
|                                                                                                                                                                                                        |                       | (in thousands)
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|Short-term bank borrowings                                                                                                                                                                              |                       | $              |        |              |  | $ | 43,851 |       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|Argentina bank loan with interest at the banks short-term
	rates that ranged between 8.75% and 10.75% at September 30,
	2000, repricing monthly, subject to call by the bank at the end
	of each month |                       |                | 14,776  |              |  |   | 16,312 |       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|Current portion of State of Arizona Economic Development Loan
	due beginning July of 2000 over 10 years                                                                                                 |                       |                | 100     |              |  |   | 100    |       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|                                                                                                                                                                                                       
|Commercial paper supported by the short-term revolving Credit
	Agreement, interest rates from 6.72% to 7.07% at
	September 30, 2000                                                                     |                       |                | 152,394 |              |  |   |       |       
|                                                                                                                                                                                                        |                       |                |         |              |  |   |        |       
|                                                                                                                                                                                                        | Total short-term debt |                | $       | 167,270      |  |   | $      | 60,263 | 
|                                                                                                                                                                                                        |                       |                |         |              |  |   |        |       

11



---



THE DIAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)

Long-term debt consisted of the following:

|                                                                                                                                   |                      |                |         |              |  |   |         |         | 
|---------------------------------------------------------------------------------------------------------------------------------- | -------------------- | -------------- | ------- | ------------ |  | - | ------- | ------- | 
|                                                                                                                                   |                      | September 30,  |         | December 31,
|                                                                                                                                   |                      | 2000           |         | 1999        
|                                                                                                                                   |                      |                |         |             
|                                                                                                                                   |                      |               
|                                                                                                                                   |                      | (in thousands)
|                                                                                                                                  
|                                                                                                                                  
|                                                                                                                                  
|                                                                                                                                  
|State of Arizona Economic Development Loan due beginning July of
	2000 over 10 years                                               |                      | $              | 879     |              |  | $ | 900     |        
|                                                                                                                                  
|                                                                                                                                  
|                                                                                                                                  
|                                                                                                                                  
|$200 million 6.5% Senior Notes due 2008, net of issue discount                                                                     |                      |                | 198,308 |              |  |   | 198,142 |        
|                                                                                                                                  
|                                                                                                                                  
|                                                                                                                                  
|                                                                                                                                  
|Commercial paper supported by the long-term revolving Credit
	Agreement, interest rates from 6.72% to 7.07% at
	September 30, 2000 |                      |                | 270,000 |              |  |   | 101,809 |        
|                                                                                                                                   |                      |                |         |              |  |   |         |        
|                                                                                                                                   | Total long-term debt |                | $       | 469,187      |  |   | $       | 300,851 | 
|                                                                                                                                   |                      |                |         |              |  |   |         |        

At September 30, 2000, we were in compliance with the
covenants under our credit facility. In light of the anticipated
operating results Dial will have for fiscal year 2000, it is
possible that at December 31, 2000, we could be out of
compliance with the covenant requiring a ratio of
3 to 1 for EBITDA to funded debt. We have discussed
this issue with our lenders and are attempting to amend this
covenant to ensure compliance through 2001. No assurances can be
given that we will be in compliance with this covenant at
December 31, 2000 or that our lenders will agree to amend
this covenant to ensure compliance. Any noncompliance with this
covenant or any other covenants under our credit facility could
have a material adverse effect on our liquidity and financial
condition.

Note 7.  Equity

At September 30, 2000, there were 105,679,849 shares of
common stock issued and 94,925,720 shares outstanding. At
September 30, 2000 and October 2, 1999, a total of
3,684,209 and 3,939,671, respectively, of the issued shares were
held by the Employee Equity Trust. At September 30, 2000
and October 2, 1999, a total of 10,754,129 and 2,968,512
shares of common stock, respectively, were held in treasury. We
have decided not to purchase any additional shares under our
stock repurchase program.

Note 8.  Income Taxes

A reconciliation between the statutory federal income tax rate
of 35% and our consolidated effective income tax rate for the
nine months ended September 30, 2000 and October 2,
1999 is as follows:

|                                 |  |                    |       |                 |  |  |      |  
|-------------------------------- |  | ------------------ | ----- | --------------- |  |  | ---- | -
|                                 |  | September 30, 2000 |       | October 2, 1999
|                                 |  |                    |       |                
|Federal statutory rate           |  |                    | 35.0  | %               |  |  | 35.0 | %
|                                
|                                
|                                
|                                
|Goodwill amortization            |  |                    | (18.3 | )               |  |  | 0.8  |  
|                                
|                                
|                                
|                                
|Foreign Sales Corp. benefit      |  |                    | 28.3  |                 |  |  | (0.5 | )
|                                
|                                
|                                
|                                
|State income taxes               |  |                    | 16.2  |                 |  |  | 3.3  |  
|                                
|                                
|                                
|                                
|Impact of lower foreign tax rate |  |                    | 13.8  |                 |  |  | (1.9 | )
|                                
|                                
|                                
|                                
|Other, net                       |  |                    | (25.7 | )               |  |  | (0.9 | )
|                                 |  |                    |       |                 |  |  |      |  
|Effective income tax rate        |  |                    | 49.3  | %               |  |  | 35.8 | %
|                                 |  |                    |       |                 |  |  |      |  

Note 9.  Gain on Special Items

During the second quarter, we sold the Dial Technical and
Administrative Center (DTAC) building and
accompanying 23 acre parcel in Scottsdale to an unrelated
third party, for a purchase price of $15.3 million. We
entered into an operating lease with this third party for the
DTAC building pending construction of a new DTAC building. We
have entered into an operating lease with an initial term of
15 years for a new DTAC building that may be constructed on
an 11-acre portion of the 23-acre parcel. We have

12



---



THE DIAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)

accounted for the land portion of this transaction as a sale and
leaseback transaction in accordance with Statement of Accounting
Standards No. 98, Accounting for Leases. The land
and building have been removed from the Consolidated Balance
Sheet and a gain of $6.7 million related to the sale of
land was recognized in the second quarter of 2000. An additional
$2.7 million gain, relating to the DTAC building and land
portion of the sale that may be leased back, has been deferred
and may be amortized to rent expense over the life of the
operating lease for the new DTAC building if the new DTAC
building is constructed.

We have entered into discussions with this third party
concerning a postponement or termination of the construction of
a new DTAC building. We currently expect that we may need to
record a special charge in the range of $3 to
$5 million in the fourth quarter depending upon the outcome
of our discussions with this third party.

In addition, we recorded a $4.6 million curtailment gain
resulting from changes to certain retiree medical plan benefits.
The anticipated annual savings of $1.0 million resulting from
our curtailment of these benefits are expected to be invested in
enhancements to other Dial employee benefit plans.

Note 10.  Segments of an Enterprise

For organizational, marketing and financial reporting purposes,
we have organized into four business segments: (i) Domestic
Branded, (ii) Specialty Personal Care,
(iii) International, and (iv) Commercial Markets and
Other. The segments were identified based on the types of
products sold, the customer base and method of distribution.

During the third quarter of 2000, we began reflecting our
Specialty Personal Care business as a separate reportable
segment. Prior to the third quarter of 2000, this business was
included with our Domestic Branded segment. This change occurred
as a result of recurring differences in economic characteristics
between Dials Specialty Personal Care and Domestic Branded
businesses. Our previous segment disclosures have been restated
to reflect this presentation.

Information as to our operations in different business segments
is set forth below. The accounting policies of the business
segments are the same as those described in the summary of
significant accounting policies included in Note 2 to the
financial statements included in The Dial Corporation 1999
Annual Report to Stockholders.

13



---



THE DIAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)

|                         |                    |                |   |           |  |            |   |               |   |       |   |        |  |  |   |         |  |  |   |           |  
|------------------------ | ------------------ | -------------- | - | --------- |  | ---------- | - | ------------- | - | ----- | - | ------ |  |  | - | ------- |  |  | - | --------- | -
|                         |                    |                |   | Specialty |  | Commercial |   |               |   |      
|                         |                    | Domestic       |   | Personal  |  | Markets &  |   |               |   |      
|                         |                    | Branded        |   | Care      |  | Other      |   | International |   | Total
|                         |                    |                |   |           |  |            |   |               |   |      
|                         |                    |               
|                         |                    | (in thousands)
|                        
|                        
|                        
|                        
|Net Sales:               |                    |                |   |           |  |            |   |               |   |       |   |        |  |  |   |         |  |  |   |          
|                        
|                        
|                        
|                        
|                         | Quarter ended:     |                |   |           |  |            |   |               |   |       |   |        |  |  |   |         |  |  |   |           |  
|                        
|                        
|                        
|                        
|                         | September 30, 2000 |                | $ | 318,962   |  |            | $ | 24,704        |   |       | $ | 15,458 |  |  | $ | 52,025  |  |  | $ | 411,149   |  
|                        
|                        
|                        
|                        
|                         | October 2, 1999    |                |   | 340,444   |  |            |   | 37,829        |   |       |   | 16,704 |  |  |   | 42,078  |  |  |   | 437,055   |  
|                        
|                        
|                        
|                        
|                         | Nine months ended: |                |   |           |  |            |   |               |   |       |   |        |  |  |   |         |  |  |   |           |  
|                        
|                        
|                        
|                        
|                         | September 30, 2000 |                |   | 934,075   |  |            |   | 71,483        |   |       |   | 49,917 |  |  |   | 137,539 |  |  |   | 1,193,014 |  
|                        
|                        
|                        
|                        
|                         | October 2, 1999    |                |   | 993,826   |  |            |   | 88,639        |   |       |   | 52,081 |  |  |   | 131,769 |  |  |   | 1,266,315 |  
|                        
|                        
|                        
|                        
|Operating Income (Loss): |                    |                |   |           |  |            |   |               |   |       |   |        |  |  |   |         |  |  |   |          
|                        
|                        
|                        
|                        
|                         | Quarter ended:     |                |   |           |  |            |   |               |   |       |   |        |  |  |   |         |  |  |   |           |  
|                        
|                        
|                        
|                        
|                         | September 30, 2000 |                |   | 18,017    |  |            |   | (40,095       | ) |       |   | 1,875  |  |  |   | 3,182   |  |  |   | (17,021   | )
|                        
|                        
|                        
|                        
|                         | October 2, 1999    |                |   | 46,092    |  |            |   | 1,684         |   |       |   | 3,583  |  |  |   | 4,256   |  |  |   | 55,615    |  
|                        
|                        
|                        
|                        
|                         | Nine months ended: |                |   |           |  |            |   |               |   |       |   |        |  |  |   |         |  |  |   |           |  
|                        
|                        
|                        
|                        
|                         | September 30, 2000 |                |   | 80,778    |  |            |   | (57,813       | ) |       |   | 6,023  |  |  |   | 6,604   |  |  |   | 35,592    |  
|                        
|                        
|                        
|                        
|                         | October 2, 1999    |                |   | 137,474   |  |            |   | (85           | ) |       |   | 8,563  |  |  |   | 13,156  |  |  |   | 159,108   |  
|                        
|                        
|                        
|                        
|Assets at:               |                    |                |   |           |  |            |   |               |   |       |   |        |  |  |   |         |  |  |   |          
|                        
|                        
|                        
|                        
|                         | September 30, 2000 |                |   | 945,816   |  |            |   | 248,690       |   |       |   | 4,080  |  |  |   | 209,943 |  |  |   | 1,408,529 |  
|                        
|                        
|                        
|                        
|                         | December 31, 1999  |                |   | 794,210   |  |            |   | 285,512       |   |       |   | 10,058 |  |  |   | 179,906 |  |  |   | 1,269,686 |  

14



---



THE DIAL CORPORATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)

Item 2.     Management Discussion
and Analysis of Results of Operations and Financial
Condition

Some statements contained in this Quarterly Report on
Form 10-Q may constitute forward-looking
statements within the meaning of The Private Securities
Litigation Reform Act of 1995. Words such as
believe, expect, intend,
anticipate, estimate,
project and similar expressions identify
forward-looking statements, which speak only as of the date the
statement was made. These forward-looking statements may
include, but are not limited to, projections of sales or net
income; issues that may affect sales or net income; projected
savings from restructuring or special charges or other items,
such as curtailment of our retiree medical benefits; projections
of capital expenditures; plans for our future, including the
discussion concerning SFX01; plans for new products;
and our financing needs.

Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified.
Future events and actual results could differ materially from
those set forth in, contemplated by, or underlying the
forward-looking statements. Statements in this Quarterly Report
on Form 10-Q, including the Notes to the Consolidated
Financial Statements and Managements Discussion and
Analysis of Results of Operations and Financial Condition,
describe factors, among others, that could contribute to or
cause such differences. Additional risk factors that could cause
actual results to differ materially from those expressed in such
forward-looking statements are set forth in Exhibit 99
which is attached as an exhibit and incorporated by reference
into this Quarterly Report on Form 10-Q. We do not
undertake any obligation to publicly update or revise any
forward-looking statements, whether as a result of new
information, future events, or otherwise.

Announcement of SFX01

As previously disclosed in the third quarter of 2000, management
has outlined an initiative labeled SFX01. This three
step initiative can be summarized as follows:

S  We intend to Stabilize our strong businesses.

F  We intend to Fix marginal businesses or jettison
them.



| |   |                                                                                          
| | - | -----------------------------------------------------------------------------------------
| | X | Once stabilized and fixed, we intend to eXplore our options as a
	company, which include:



| |   |                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------
| |  | Continuing as an independent company.                                                                                      
|
| |  | Merging with one or more companies to form a larger company to
	more effectively compete in the consumer products industry.
|
| |  | Selling our company, either in whole or in part.                                                                           

01  We expect to complete this initiative during 2001.

We currently are exploring, and will continue to explore,
strategic alternatives available to Dial. Decisions made in the
course of SFX01 could result in Dial recording additional
special or restructuring charges or additional asset writedowns.

Restructuring & Special Charges

Third Quarter 2000 Special Charges

On October 18, 2000, we announced a special charge
associated with certain businesses that will result in a pre-tax
charge to earnings in the range of approximately $60 to $70
million to be taken in the third and fourth quarters of 2000 and
the first quarter of 2001. The charge relates to the Specialty
Personal Care business, the Dial/ Henkel LLC joint venture, and
severance costs for prior management.

15



---



We recorded $48.7 million ($31.9 million after tax or $0.35 per
share) of this special charge during the third quarter of 2000.
The remaining charges currently are anticipated to be recorded
in the fourth quarter of 2000 and first quarter of 2001. The
pre-tax charges during the third quarter consist of the
following:

|                                                  |       |                |        |               |  |                |      |             |   |   |        |        |   |   |        |        | 
|------------------------------------------------- | ----- | -------------- | ------ | ------------- |  | -------------- | ---- | ----------- | - | - | ------ | ------ | - | - | ------ | ------ | 
|                                                  |       |                |        |               |  |                |      | Ending     
|                                                  |       | Total          |        | Cash spent    |  | Amount charged |      | reserves at
|                                                  |       | charges        |        | during period |  | against assets |      | 9/30/00    
|                                                  |       |                |        |               |  |                |      |            
|                                                  |       |               
|                                                  |       | (in thousands)
|                                                 
|                                                 
|                                                 
|                                                 
|Employee separations                              |       | $              | 2,960  |               |  | $              | (200 | )           |   | $ |       |        |   | $ | 2,760  |       
|                                                 
|                                                 
|                                                 
|                                                 
|Discontinued product inventories                  |       |                | 34,283 |               |  |                |     |             |   |   |       |        |   |   | 34,283 |       
|                                                 
|                                                 
|                                                 
|                                                 
|Joint venture  discontinuation of Purex Advanced |       |                | 11,495 |               |  |                |     |             |   |   | (5,416 | )      |   |   | 6,079  |       
|                                                  |       |                |        |               |  |                |      |             |   |   |        |        |   |   |        |       
|                                                  | Total |                | $      | 48,738        |  |                | $    | (200        | ) |   | $      | (5,416 | ) |   | $      | 43,122 | 
|                                                  |       |                |        |               |  |                |      |             |   |   |        |        |   |   |        |       

See the additional discussion of these charges in Notes 2 and 4
to the Consolidated Financial Statements.

For income statement purposes, $29.0 million of the special
charge is included in Asset writedowns and discontinued
product inventories as a result of restructuring and special
charges, $8.2 million is included in Selling, general and
administrative expenses, and $11.5 million is included in
Net loss of joint venture. For segment reporting, $34.4
million of the charge is included in Specialty Personal Care,
$2.3 million is included in Domestic Branded, $0.4 million is
included in International and $0.1 million is included in
Commercial Markets & Other.

Cash requirements for the special charges currently are expected
to be funded from normal operations. As a result of the special
charges, we currently expect to realize projected annual pre-tax
operating benefits of approximately $10.0 million beginning in
2001. These benefits consist of savings from the Dial/ Henkel
LLC joint venture of approximately $6.0 million and reductions
in Selling, general and administrative expensesand
Cost of products soldtotaling approximately $4.0 million.

The expected timing and estimated amount of costs and projected
savings are based on managements judgment in light of the
circumstances and estimates at the time the judgments were made.
Accordingly, such estimates may change as future events evolve.
Among other matters, unforeseen changes in operating
requirements and other factors referred to in Exhibit 99 to
this Form 10-Q could cause actual operating benefits to
differ materially from anticipated results.

Second Quarter 2000 Restructuring

On June 28, 2000, we announced a $26.0 million
restructuring charge ($17.0 million after tax or $.19 per share)
designed to improve profitability and operational efficiencies.
Specifically, the charge is to:



| |   |                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Close our Bristol, Pennsylvania, dry detergent plant. As a
	result, our dry detergent manufacturing is expected to be
	consolidated into our St. Louis plant by the first quarter of
	2001;                        
|
| |  | Consolidate each of the manufacturing and distribution functions
	of the Specialty Personal Care business, which resulted in
	discontinuation of certain formulations and inventory, and other
	one-time costs; and
|
| |  | Restructure domestic and international organizations, including
	our sales organization, as a result of acquisitions and changes
	in the business environment.                                                     

We recorded charges totaling $21.1 million ($13.8 million after
tax) during the quarter ended July 1, 2000, and recorded
additional charges totaling $2.5 million ($1.6 million after
tax) in the quarter ended September 30, 2000. Additional
charges of $2.4 million ($1.6 million after tax) are anticipated
in the fourth

16



---





|                                                      |       |                |       |           |  |               |       |                |  |             |        |        |   |   |        |        |   |   |       |       | 
|----------------------------------------------------- | ----- | -------------- | ----- | --------- |  | ------------- | ----- | -------------- |  | ----------- | ------ | ------ | - | - | ------ | ------ | - | - | ----- | ----- | 
|                                                      |       | Beginning      |       |           |  |               |       | Amount         |  | Ending     
|                                                      |       | reserves at    |       | Total new |  | Cash spent    |       | charged        |  | reserves at
|                                                      |       | 7/1/00         |       | charges   |  | during period |       | against assets |  | 9/30/00    
|                                                      |       |                |       |           |  |               |       |                |  |            
|                                                      |       |               
|                                                      |       | (in thousands)
|                                                     
|                                                     
|                                                     
|                                                     
|Employee separations                                  |       | $              | 1,538 |           |  | $             | 2,065 |                |  | $           | (1,348 | )      |   | $ |       |        |   | $ | 2,255 |      
|                                                     
|                                                     
|                                                     
|                                                     
|Asset writedowns and discontinued product inventories |       |                | 8,643 |           |  |               | 454   |                |  |             |       |        |   |   | (4,934 | )      |   |   | 4,163 |      
|                                                     
|                                                     
|                                                     
|                                                     
|Other exit costs                                      |       |                | 845   |           |  |               |      |                |  |             | (12    | )      |   |   | 15     |        |   |   | 848   |      
|                                                      |       |                |       |           |  |               |       |                |  |             |        |        |   |   |        |        |   |   |       |      
|                                                      | Total |                | $     | 11,026    |  |               | $     | 2,519          |  |             | $      | (1,360 | ) |   | $      | (4,919 | ) |   | $     | 7,266 | 
|                                                      |       |                |       |           |  |               |       |                |  |             |        |        |   |   |        |        |   |   |       |      

See the additional discussion concerning this restructuring
charge in Note 2 to the Consolidated Financial Statements.

For income statement purposes, $19.5 million of the
restructuring charge is included in Asset writedowns and
discontinued product inventories as a result of restructuring
and special chargesand $4.1 million is included in
Selling, general and administrative expenses. For segment
reporting, $11.0 million of the charge is included in Domestic
Branded, $10.7 million is included in Specialty Personal Care
and $1.9 million is included in International.

Cash requirements for the restructuring currently are expected
to be funded from normal operations. As a result of the
restructuring charge, we currently expect to realize projected
annual pretax operating benefits of approximately $5.3 million
beginning in 2001. These benefits consist of reductions in
Cost of products soldof approximately $3.3 million and
in Selling, general and administrative expensesof
approximately $2.0 million.

The expected timing and estimated amount of costs and projected
savings are based on managements judgment in light of the
circumstances and estimates at the time the judgements were
made. Accordingly, such estimates may change as future events
evolve. Among other matters, unforeseen changes in operating
requirements and other factors referred to in Exhibit 99 to
this Form 10-Q could cause actual operating benefits to
differ materially from anticipated results.

Comparison of the Third Quarter of 2000 with the Third
Quarter of 1999

Net sales for the quarter decreased 5.9% to $411.1 million from
$437.1 million in the same period in 1999 primarily as a result
of a 6.3% decrease in our Domestic Branded segment and a 34.7%
decrease in our Specialty Personal Care segment, offset in part
by an increase in our International segment of 23.6%. Third
quarter 2000 net sales included $26.9 million from acquisitions
of the Coast, Plusbelle and Zout businesses.

Net sales in our Domestic Branded segment decreased 6.3% to
$319.0 million from $340.4 million in the same period last year.
Net sales information for the businesses included in our
Domestic Branded segment is set forth below.

|        |                        |               |       |                     |  |        |       |            |  |   |       |       |   |  |       |      |   
|------- | ---------------------- | ------------- | ----- | ------------------- |  | ------ | ----- | ---------- |  | - | ----- | ----- | - |  | ----- | ---- | --
|        |                        |               |       |                    
|        |                        | Third Quarter |       | Increase/(Decrease)
|        |                        |               |       |                    
|        |                        | 2000          |       | 1999                |  | Amount |       | Percentage
|        |                        |               |       |                     |  |        |       |           
|        |                        |              
|        |                        | (in millions)
|       
|       
|       
|       
|Dial    |                        | $             | 101.1 |                     |  | $      | 106.7 |            |  | $ | (5.6  | )     |   |  | (5.3  | %)  
|       
|       
|       
|       
|Armour  |                        |               | 47.3  |                     |  |        | 67.5  |            |  |   | (20.2 | )     |   |  | (30.0 | %)  
|       
|       
|       
|       
|Purex   |                        |               | 115.7 |                     |  |        | 112.8 |            |  |   | 2.9   |       |   |  | 2.6   | %   
|       
|       
|       
|       
|Renuzit |                        |               | 54.9  |                     |  |        | 53.4  |            |  |   | 1.5   |       |   |  | 2.7   | %   
|        |                        |               |       |                     |  |        |       |            |  |   |       |       |   |  |       |     
|        | Total Domestic Branded |               | $     | 319.0               |  |        | $     | 340.4      |  |   | $     | (21.4 | ) |  |       | (6.3 | %)
|        |                        |               |       |                     |  |        |       |            |  |   |       |       |   |  |       |     

The decline in Dial resulted primarily from our efforts to
reduce end of quarter promotions and shipments, the loss of
sales in club stores, and tough comparisons to last year due to
new product introductions, offset in part by the inclusion of
the Coast acquisition. The decline in Armour resulted primarily

17



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Net sales in our Specialty Personal Care segment decreased 34.7%
to $24.7 million from $37.8 million in the same period last year
primarily as a result of problems experienced in consolidating
the distribution and warehousing functions and resulting
distribution losses at some of our customers. Approximately 65%
of the total net sales of our Specialty Personal Care business
are recorded in the third and fourth quarters. We currently
anticipate that net sales of our Specialty Personal Care segment
will be lower in the fourth quarter of 2000 compared to the same
period last year as a result of the factors discussed above and
the discontinuance of some of the Specialty Personal Care
SKUs as fully discussed in Note 2 to the Consolidated
Financial Statements.

Net sales in our International segment increased 23.6% to $52.0
million from $42.1 million primarily as a result of the
inclusion of the results of the Plusbelle acquisition in
Argentina, partially offset by lower sales in our Mexico
business caused by difficulties encountered in transferring our
sales administrative function to the Dial/ Henkel Mexico joint
venture as well as the continuing price war in Argentina.

Net sales in our Commercial Markets and Other segment decreased
7.3% to $15.5 million from $16.7 million primarily as a result
of the discontinuation of our merchant surfactant business in
the fourth quarter of 1999.

Gross margin for the quarter decreased 180 basis points to 47.8%
from 49.6% in the same period in 1999, excluding the effect of
the restructuring and special charges. The restructuring and
special charges decreased the gross margin by an additional 760
basis points to 40.2%. Gross margin was negatively impacted
primarily by lower overhead absorption in our manufacturing
facilities associated with lower sales, as well as higher
petroleum costs and higher costs resulting from consolidating
the distribution and warehousing functions of our Specialty
Personal Care business.

Selling, general and administrative expenses, excluding $8.5
million of expenses attributable to the restructuring and
special charges discussed above, are up 7.6% to $173.6 million
from $161.3 million in the same period in 1999. This increase
primarily resulted from continued marketing and promotional
spending in the third quarter of 2000 compared to lower than
expected sales volumes and from the accrual of additional
reserves for anticipated holiday unsaleables in our Specialty
Personal Care business.

Interest and other expenses increased 73.4% to $13.9 million
from $8.0 million in the same period in 1999. The increase was
primarily due to increased borrowings to fund acquisitions of
the Coast, Plusbelle and Zout businesses, our investment in the
Dial/ Henkel Mexico joint venture and our stock repurchase
program.

Our share of the loss in the Dial/ Henkel joint ventures was
$2.1 million in the third quarter, excluding the effect of the
special charge relating to the Dial/ Henkel LLC joint venture.
The special charge recorded for discontinuing Purex Advanced was
$11.5 million. This charge primarily consisted of recording
fixed assets and inventories at net realizable value. We
currently anticipate recording additional charges in the fourth
quarter of 2000 and the first quarter of 2001 depending on the
outcome of our discussions with Henkel regarding the future of
the Dial/ Henkel joint ventures.

Our pre-tax gain on special items of $4.6 million resulted from
changes to certain retiree medical plan benefits. The
anticipated annual savings of $1.0 million resulting from our
curtailment of these benefits are expected to be invested in
enhancements to other Dial employee benefit plans.

18



---



We had an income tax benefit of $13.8 million for the quarter
resulting primarily from losses recognized as a result of the
special and restructuring charges. Our effective income tax rate
decreased to 34.5% from 34.9% in the same period in 1999.

Net income, excluding the special and restructuring charges and
a one-time gain on benefit plan changes, was $4.4 million or
$0.05 per diluted share, versus $30.7 million, or $0.31 per
diluted share in the third quarter of 1999. Our net loss,
including $51.3 million of special and restructuring charges and
a $4.6 million pre-tax one-time gain on the benefit plan
changes, was $26.2 million, or $0.29 per share (diluted). This
decrease in net income is primarily attributable to the factors
explained above.

Comparison of the First Nine Months of 2000 with the First
Nine Months of 1999

Net sales for the first nine months of 2000 decreased 5.8% to
$1,193.0 million from $1,266.3 million in the same period in
1999 primarily as a result of a 6.0% decrease in our Domestic
Branded segment and a 19.4% decrease in our Specialty Personal
Care segment, offset in part by an increase in our International
segment of 4.3%. Net sales through the first nine months of 2000
included $38.3 million from acquisitions of the Coast, Plusbelle
and Zout businesses.

Net sales in our Domestic Branded segment decreased 6.0% to
$934.1 million from $993.8 million in the same period last year.
Net sales information for the businesses included in our
Domestic Branded segment is set forth below.

|        |                        |                   |       |                     |  |        |       |            |  |   |       |       |   |  |       |      |   
|------- | ---------------------- | ----------------- | ----- | ------------------- |  | ------ | ----- | ---------- |  | - | ----- | ----- | - |  | ----- | ---- | --
|        |                        |                   |       |                    
|        |                        | Nine Months Ended |       | Increase/(Decrease)
|        |                        |                   |       |                    
|        |                        | 2000              |       | 1999                |  | Amount |       | Percentage
|        |                        |                   |       |                     |  |        |       |           
|        |                        |                  
|        |                        | (in millions)    
|       
|       
|       
|       
|Dial    |                        | $                 | 284.6 |                     |  | $      | 307.8 |            |  | $ | (23.2 | )     |   |  | (7.5  | %)  
|       
|       
|       
|       
|Armour  |                        |                   | 143.3 |                     |  |        | 179.4 |            |  |   | (36.1 | )     |   |  | (20.2 | %)  
|       
|       
|       
|       
|Purex   |                        |                   | 350.0 |                     |  |        | 354.6 |            |  |   | (4.6  | )     |   |  | (1.3  | %)  
|       
|       
|       
|       
|Renuzit |                        |                   | 156.2 |                     |  |        | 152.0 |            |  |   | 4.2   |       |   |  | 2.8   | %   
|        |                        |                   |       |                     |  |        |       |            |  |   |       |       |   |  |       |     
|        | Total Domestic Branded |                   | $     | 934.1               |  |        | $     | 993.8      |  |   | $     | (59.7 | ) |  |       | (6.0 | %)
|        |                        |                   |       |                     |  |        |       |            |  |   |       |       |   |  |       |     

The decline in Dial resulted primarily from our efforts to
reduce end of quarter promotions and shipments, tough
comparisons to last year due to new product introductions, the
loss of sales in club stores, and the previously disclosed Dial
bar restage, offset in part by the inclusion of the Coast
acquisition. The decline in Armour resulted primarily from
increased competition, the previously disclosed Y2K trade
inventory build up, tough comparisons to last year due to the
heavy 1999 hurricane season and our efforts to reduce end of
quarter promotions and shipments. There was also a slight year
over year decline in Purex of 1.3% due to softness in our
non-Purex branded laundry business, offset in part by an
increase in the Purex branded laundry business. The increase in
Renuzit resulted primarily from new product introductions. We
currently anticipate that net sales of our Domestic Branded
segment will be lower in the fourth quarter of 2000 compared to
the same period last year as a result of our efforts to reduce
end of quarter promotions and shipments, increased competition
and the other factors discussed above that are negatively
impacting our sales.

Net sales in our Specialty Personal Care segment decreased 19.4%
to $71.5 million from $88.6 million in the same period last year
primarily as a result of problems experienced in consolidating
the distribution and warehousing functions and resulting
distribution losses at some of our customers. Approximately 65%
of the total net sales of our Specialty Personal Care business
are recorded in the third and fourth quarters. We currently
anticipate that net sales of our Specialty Personal Care segment
will be lower in the fourth quarter of 2000 compared to the same
period last year as a result of the factors discussed above and
the discontinuance of some of the Specialty Personal Care
SKUs as fully discussed in Note 2 to the Consolidated
Financial Statements.

Net sales in our International segment increased 4.3% to $137.5
million from $131.9 million primarily as a result of the
inclusion of the results of the Plusbelle acquisition in
Argentina, offset by the continuing price

19



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Net sales in our Commercial Markets and Other segment decreased
4.2% to $49.9 million from $52.1 million primarily as a result
of the discontinuation of our merchant surfactant business in
the fourth quarter of 1999.

Gross margin for the first nine months of 2000 decreased 130
basis points to 48.7% from 50.0% in the same period in 1999,
excluding the effect of the restructuring and special charges.
The restructuring and special charges decreased the gross margin
by an additional 410 basis points to 44.6%. Gross margin was
negatively impacted primarily by lower overhead absorption in
the Companys manufacturing facilities associated with
lower sales, higher petroleum costs and higher costs resulting
from consolidating the distribution and warehousing functions of
our Specialty Personal Care business.

Selling, general and administrative expenses, excluding $12.3
million of expenses attributable to the restructuring and
special charges, are up 2.3% to $484.4 million from $473.5
million in the same period in 1999. Selling, general and
administrative expenses increased as a percentage of sales to
40.6% for the first nine months of 2000 compared to 37.4% for
same time period in the prior year. This increase resulted
primarily from continued marketing and promotional spending in
the first nine months of 2000 compared to lower than expected
sales and from the accrual of additional reserves for
anticipated holiday unsaleables in our Specialty Personal Care
business.

Interest and other expense for the first nine months of 2000
increased 45.4% to $35.8 million from $24.7 million in the same
period in 1999. The increase was primarily due to increased
borrowings to fund the acquisitions of the Coast, Plusbelle and
Zout businesses, our investment in the Dial/ Henkel Mexico joint
venture, our stock repurchase program and the elimination of our
sale of receivables program.

Our share of the loss in the Dial/ Henkel joint ventures was
$6.5 million in the first nine months of 2000, excluding the
effect of the special charge relating to the Dial/ Henkel LLC
joint venture. The special charge recorded for discontinuing
Purex Advanced was $11.5 million. This charge primarily
consisted of recording property and inventories at net
realizable value. We currently anticipate recording additional
charges in the fourth quarter of 2000 and the first quarter of
2001 depending on the outcome of our discussions with Henkel
regarding the future of the Dial/ Henkel joint ventures.

Our gain on special items consists of a pre-tax gain on sale of
facility of $6.7 million resulted from the sale of land in a
transaction where we sold our DTAC building and accompanying 23
acre parcel in Scottsdale to an unrelated third party. An
additional $2.7 million gain has been deferred and may be
amortized to rent expense over the term of the lease for a new
DTAC building if a new DTAC building is constructed. We have
entered into discussions with this third party concerning a
postponement or termination of the construction of a new DTAC
building. We currently expect that we may need to record a
special charge in the range of $3 to $5 million in the fourth
quarter depending upon the outcome of our discussions with this
third party. In addition, we recorded a $4.6 million curtailment
gain resulting from changes to certain retiree medical plan
benefits. The anticipated annual savings of $1.0 million
resulting from our curtailment of these benefits are expected to
be invested in enhancements to other Dial employee benefit plans.

We had an income tax benefit of $3.4 million for the first nine
months of 2000 resulting primarily from losses recognized as a
result of the special and restructuring charges. Our
consolidated effective income tax rate for the first nine months
of 2000 was 49.3%, up from 35.8% for the first nine months of
1999.

Net loss for the first nine months of 2000, excluding the
special and restructuring charges and gain on special items, was
$35.4 million, or $0.38 per diluted share, versus $86.1 million,
or $0.86 per diluted share in the same period of 1999. Including
the $72.3 million special and restructuring charges and $11.2
million pre-tax one-time gains, we reported a net loss of $3.5
million, or $0.04 per diluted share. This decrease in net income
is primarily attributable to the factors explained above.

20



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Liquidity and Capital Resources

Total debt increased $275.4 million to $636.5 million from
$361.1 million at December 31, 1999. The increase is
primarily attributable to the acquisitions of the Coast,
Plusbelle and Zout businesses, our investment in the Dial/
Henkel Mexico joint venture, the funding of our share repurchase
program and the elimination of our sale of receivables program.
As of September 30, 2000, we have used $54.4 million of the
$75.0 million authorized under our 2000 stock repurchase program
to repurchase shares. We have decided not to purchase any
additional shares under this stock repurchase program.

During the first three quarters of 2000, we generated $58.0
million in cash from operations compared to generating $62.3
million in the same period in 1999. The decrease in cash
provided from operations is primarily attributable to a decline
in net income, offset in part by reduced working capital levels.

Capital expenditures for the first three quarters of 2000 were
$29.3 million. Capital spending in 2000 is expected to
approximate $41.2 million and will be concentrated primarily on
equipment and information systems that provide opportunities to
reduce manufacturing, logistic and administrative costs.
However, our 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.

During the second quarter, we sold the Dial Technical and
Administrative Center (DTAC) building and
accompanying 23 acre parcel in Scottsdale to an unrelated third
party, for a purchase price of $15.3 million. We entered into an
operating lease with this third party for the DTAC building
pending construction of a new DTAC building. We have entered
into an operating lease with an initial term of 15 years
for a new DTAC building that may be constructed on an 11 acre
portion of the 23 acre parcel. We have accounted for the land
portion of this transaction as a sale and leaseback transaction
in accordance with Statement of Accounting Standards
No. 98, Accounting for Leases. The land and building
have been removed from the Consolidated Balance Sheet and a gain
of $6.7 million related to the sale of land was recognized in
the second quarter of 2000. An additional $2.7 million gain,
relating to the DTAC building and land portion of the sale that
may be leased back, has been deferred and may be amortized to
rent expense over the life of the operating lease for the new
DTAC building if the new DTAC building is constructed. We have
entered into discussions with this third party concerning a
postponement or termination of the construction of a new DTAC
building. We currently expect that we may need to record a
special charge in the range of $3 to $5 million in the fourth
quarter depending upon the outcome of our discussions with this
third party.

In the second quarter we entered into a new $450 million credit
facility that replaced our $350 million facility. Our credit
facility primarily serves as a backstop facility for our
commercial paper program. Borrowings under our credit facility,
if made, are on a revolving basis under commitments available
until July 2005 for up to $270 million and under
commitments available until July 2001 for up to $180
million. The interest rate applicable to borrowings under our
credit facility is, at our option, indexed to the bank prime
rate or the London Interbank Offerring Rate (LIBOR),
plus appropriate spreads over such indices during the term of
the credit facility. Our credit facility also requires us to pay
commitment fees to the banks making commitments under the credit
facility. These spreads and fees are subject to adjustment if
our debt ratings change.

At September 30, 2000, we were in compliance with the
covenants under our credit facility. In light of the anticipated
operating results Dial will have for fiscal year 2000, it is
possible that at December 31, 2000, we could be out of
compliance with the covenant requiring a ratio of 3 to 1 for
EBITDA to funded debt. We have discussed this issue with our
lenders and are attempting to amend this covenant to ensure
compliance through 2001. No assurances can be given that we will
be in compliance with this covenant at December 31, 2000 or
that our lenders will agree to amend this covenant to ensure
compliance. Any noncompliance with this covenant or any other
covenants under our credit facility could have a material
adverse effect on our liquidity and financial condition.

We recently announced that we reduced the quarterly dividend on
Dial stock from $.08 per share to $.04 per share, beginning with
the dividend to be paid in January 2001. This action was
taken to accelerate repayment of debt. The declaration and
payment of dividends are subject to the discretion of
Dials Board of

21



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Recent Accounting Pronouncements

In December 1999, the Securities and Exchange Commission
issued Staff Accounting Bulletin No. 101
(SAB 101), which summarizes the staffs
views in applying generally accepted accounting principles to
revenue recognition in financial statements. This staff
accounting bulletin was amended in March and June of 2000 to
delay the implementation of SAB 101 until the fourth
quarter of 2000. We do not anticipate that the effect of this
pronouncement will have a material impact on our reported
operating results or financial position.

The Financial Accounting Standards Board has issued Statement of
Financial Accounting Standards No. 133, Accounting for
Derivative Instruments and Hedging Activities, which provides
guidance on accounting for derivatives and hedge transactions.
This statement is effective for Dial on January 1, 2001. We
do not anticipate that the effect of this pronouncement will
have a material impact on our reported operating results or
financial position.

In May 2000, the Financial Accounting Standards
Boards Emerging Issues Task Force (EITF)
issued Issue No. 00-14, Accounting for Certain Sales
Incentives. This Issue addresses the recognition,
measurement, and income statement classification for certain
sales incentives. The consensus on EITF 00-14 will be
effective in the fourth quarter of 2000. We are currently in the
process of analyzing the requirements of this pronouncement and
its impact on Dials operating results.

The EITF is currently discussing Issue No. 00-25,
Accounting for Consideration from a Vendor to a Retailer in
Connection with the Purchase or Promotion of the Vendors
Products. This Issue addresses the income statement
classification of consideration, other than that directly
addressed in Issue 00-14, from a vendor (typically a
manufacturer or distributor) to a customer (typically a retailer
or wholesaler) in connection with the sale to the customer of
the vendors products, or to promote sales of the
vendors products by the customer. A consensus on
Issue 00-25 has not been reached.

We currently record the consideration paid to promote our
products as trade promotion expense. For income statement
purposes, we currently record trade promotion expense is
currently recorded as Selling, general and administrative
expense.Such costs include amounts paid to customers for
space in the retailers stores (slotting fees), amounts
paid to obtain favorable display positions in the
retailers stores and amounts paid to obtain every-day low
pricing or other promotional activity. Those promotions are
offered to retailers in lump sum payments and as rate per unit
allowances as dictated by industry norms. We expense these
promotional activities in the period during which the related
product ships. In 2000, we expect to incur more than $400.0
million of trade promotion expense.

The final EITF consensus could have a material effect on
Dials historical and future net sales amounts, sales
growth rates, gross margins and operating margins if the
consensus requires that some or all of these types of trade
promotion costs be recorded by Dial as a reduction of sales
rather than as selling, general and administrative expenses.

PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

On May 21, 1999, we were served with a complaint filed by
the U.S. Equal Employment Opportunity Commission (the
EEOC) in the U.S. District Court for the Northern
District of Illinois, Eastern Division. This action is entitled
Equal Employment Opportunity Commission v. The Dial
Corporation, Civil Action No. 99 C 3356. The EEOC
alleges that Dial has engaged in a pattern and practice of
discrimination against a class of female employees by subjecting
them to sexual or sex-based harassment and failing to take
prompt remedial action after these employees complained about
this alleged harassment. The EEOC is seeking to enjoin Dial from
this alleged harassment, to require us to train our managerial
employees regarding the

22



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Item 6.  Exhibits and Reports on
Form 8-K

(A)  Exhibits

| |      |  |  |                                                                                                                   
| | ---- |  |  | ------------------------------------------------------------------------------------------------------------------
| | 10.1 |  |  | Employment Agreement with Herbert M. Baum dated August 7,
	2000.                                                  
| | 10.2 |  |  | Waiver of Claims and Acknowledgement Agreement with Susan J.
	Riley dated August 7, 2000.                         
| | 10.3 |  |  | Waiver of Claims and Acknowledgement Agreement with Jeffrey Dias
	dated September 29, 2000.                       
| | 27.  |  |  | Financial Data Schedule.                                                                                          
| | 99.  |  |  | Private Securities Litigation Reform Act of 1995 Safe Harbor
	Compliance Statement for Forward-Looking Statements.

(B)  Reports on Form 8-K

We filed a Current Report on Form 8-K, dated
October 18, 2000, reporting that Dial issued a press
release reducing its quarterly dividend and announcing a special
charge to be taken in the third and fourth quarter of 2000.

We filed a Current Report on Form 8-K, dated
October 24, 2000, reporting that Dial issued a press
release relating to its financial results for the third quarter
of 2000.

23



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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



November 13, 2000



|                                                      | 
|----------------------------------------------------- | 
|/s/ CONRAD A. CONRAD                                  | 
|Conrad A. Conrad                                      | 
|Senior Vice President and Chief Financial Officer     | 
|(Principal Financial Officer and Authorized Officer)  | 
|                                                     
|/s/ JOHN F. TIERNEY                                   | 
|John F. Tierney                                       | 
|Senior Vice President and Controller                  | 
|(Principal Accounting Officer and Authorized Officer) | 

24



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EXHIBIT INDEX

|        |      |             |  |                                                                                                                   
|------- | ---- | ----------- |  | ------------------------------------------------------------------------------------------------------------------
|Exhibit |      |            
|No.     |      | Description
|        |      |            
|        | 10.1 |             |  | Employment Agreement with Herbert M. Baum dated August 7,
	2000.                                                  
|        | 10.2 |             |  | Waiver of Claims and Acknowledgement Agreement with Susan J.
	Riley dated August 7, 2000.                         
|        | 10.3 |             |  | Waiver of Claims and Acknowledgement Agreement with Jeffrey Dias
	dated September 29, 2000.                       
|        | 27.  |             |  | Financial Data Schedule.                                                                                          
|        | 99.  |             |  | Private Securities Litigation Reform Act of 1995 Safe Harbor
	Compliance Statement for Forward-Looking Statements.