|**UNITED STATES****SECURITIES AND EXCHANGE COMMISSION****Washington, D.C. 20549**

**FORM 10-Q**
QUARTERLY REPORT PURSUANT TO SECTION 13OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended  April 1, 2000
Commission file number 1-11793
**THE DIAL CORPORATION**
(Exact Name of Registrant as Specified in its Charter)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DELAWARE                                                      | 51-0374887                         
|------------------------------------------------------------- | -----------------------------------
|(State or Other Jurisdiction ofIncorporation or Organization) | (I.R.S. EmployerIdentification No.)
|                                                              |                                    
|15501 NORTH DIAL BOULEVARDSCOTTSDALE, ARIZONA                 | 85260-1619                         
|(Address of Principal Executive Offices)                      | (Zip Code)                         

|Registrant's Telephone Number, Including Area Code: (480) 754-3425
Indicate
by check mark whether the registrant (1) has filed all Exchange Act reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Yes | X | No | 
|--- | - | -- | 
|    |   |    | 

|The
number of shares of Common Stock, $.01 par value, outstanding as the close of
business on April 29, 2000 was 94,879,288.




PART I.  FINANCIAL INFORMATION
Item 1.  Financial StatementsTHE DIAL CORPORATIONCONSOLIDATED BALANCE SHEET
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                      |  | (Unaudited)   |           |      | December 31, |          
|----------------------------------------------------- |  | ------------- | --------- | ---- | ------------ | ---------
|(Dollars in thousands, except share data)             |  | April 1, 2000 |           | 1999 |             
|                                                      |  |               |           |      |             
|ASSETS                                                |  |               |           |      |              |          
|                                                      |  |               |           |      |             
|Current Assets:                                       |  |               |           |      |              |          
|Cash and cash equivalents                             |  | $             | 5,183     |      | $            | 6,126    
|Receivables, less allowance of $8,133 and $7,994      |  |               | 163,729   |      |              | 107,413  
|Inventories                                           |  |               | 198,437   |      |              | 180,744  
|Deferred income taxes                                 |  |               | 14,622    |      |              | 17,852   
|Other current assets                                  |  |               | 11,144    |      |              | 20,369   
|                                                      |  |               |           |      |             
|Total current assets                                  |  |               | 393,115   |      |              | 332,504  
|                                                      |  |               |           |      |              |          
|Property and equipment, net                           |  |               | 303,295   |      |              | 306,585  
|Deferred income taxes                                 |  |               | 62,464    |      |              | 65,200   
|Intangibles, net                                      |  |               | 521,788   |      |              | 524,745  
|Other assets                                          |  |               | 41,133    |      |              | 40,652   
|                                                      |  |               |           |      |             
|                                                      |  | $             | 1,321,795 |      | $            | 1,269,686
|                                                      |  |               |           |      |             
|                                                      |  |               |           |      |              |          
|                                                      |  |               |           |      |             
|LIABILITIES AND STOCKHOLDERS' EQUITY                  |  |               |           |      |              |          
|                                                      |  |               |           |      |             
|Current Liabilities:                                  |  |               |           |      |              |          
|Trade accounts payable                                |  | $             | 97,604    |      | $            | 128,320  
|Short-term borrowings                                 |  |               | 151,907   |      |              | 60,263   
|Income taxes payable                                  |  |               | 8,863     |      |              | 29,931   
|Other current liabilities                             |  |               | 72,890    |      |              | 99,600   
|                                                      |  |               |           |      |             
|Total current liabilities                             |  |               | 331,264   |      |              | 318,114  
|Long-term debt                                        |  |               | 410,550   |      |              | 300,851  
|Pension and other benefits                            |  |               | 229,008   |      |              | 232,586  
|Other liabilities                                     |  |               | 6,335     |      |              | 6,864    
|                                                      |  |               |           |      |             
|Total liabilities                                     |  |               | 977,157   |      |              | 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; 105,608,074 and 105,480,645 shares issued |  |               | 1,056     |      |              | 1,055    
|Additional capital                                    |  |               | 408,792   |      |              | 448,977  
|Retained income                                       |  |               | 204,335   |      |              | 190,370  
|Accumulated other comprehensive income                |  |               | (2,965    | )    |              | (2,851   
|Unearned employee benefits                            |  |               | (52,941   | )    |              | (95,802  
|Treasury stock, 10,734,991 and 4,887,176 shares held  |  |               | (213,639  | )    |              | (130,478 
|                                                      |  |               |           |      |             
|Total stockholders' equity                            |  |               | 344,638   |      |              | 411,271  
|                                                      |  |               |           |      |             
|                                                      |  | $             | 1,321,795 |      | $            | 1,269,686
|                                                      |  |               |           |      |             

|See Notes to Consolidated Financial Statements.2
THE DIAL CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS AND COMPREHENSIVE INCOME
|-----------------------------------------------------------------------------------------------------------------------------------

|                                                                                  |  | (Unaudited)   |           
|--------------------------------------------------------------------------------- |  | ------------- | ----------
|                                                                                  |  | Quarter Ended |           
|                                                                                  |  |               |           
|(in thousands, except per share data)                                             |  | April 1, 2000 |           
|                                                                                  |  |               |           
|Net sales                                                                         |  | $             | 373,124   
|                                                                                  |  |               |           
|Costs and expenses:                                                               |  |               |           
|Cost of products sold                                                             |  |               | 188,511   
|Selling, general and administrative expenses                                      |  |               | 141,431   
|                                                                                  |  |               |           
|                                                                                  |  |               | 329,942   
|                                                                                  |  |               |           
|                                                                                  |  |               |           
|Operating income                                                                  |  |               | 43,182    
|                                                                                  |  |               |           
|Interest and other expenses                                                       |  |               | 9,639     
|Earnings (Loss) of joint venture                                                  |  |               | (721      
|                                                                                  |  |               |           
|                                                                                  |  |               |           
|Income before income taxes                                                        |  |               | 32,822    
|Income taxes                                                                      |  |               | 11,324    
|                                                                                  |  |               |           
|NET  INCOME                                                                       |  | $             | 21,498    
|                                                                                  |  |               |           
|NET INCOME PER SHARE -- BASIC                                                     |  | $             | 0.23      
|                                                                                  |  |               |           
|NET INCOME PER SHARE -- DILUTED                                                   |  | $             | 0.23      
|                                                                                  |  |               |           
|Weighted average basic shares outstanding
     Weighted average equivalent shares |  |               | 93,979
631
|                                                                                  |  |               |           
|Weighted average diluted shares outstanding                                       |  |               | 94,610    
|                                                                                  |  |               |           
|NET INCOME                                                                        |  | $             | 21,498    
|Other comprehensive income (loss) net of tax:                                     |  |               |           
|Foreign currency translation adjustment                                           |  |               | 131       
|Minimum pension liability                                                         |  |               | (245      
|                                                                                  |  |               |           
|Other comprehensive income                                                        |  |               | (114      
|                                                                                  |  |               |           
|COMPREHENSIVE INCOME                                                              |  | $             | 21,384    
|                                                                                  |  |               |           

|See Notes to Consolidated Financial Statements.3
THE DIAL CORPORATION
STATEMENT OF CONSOLIDATED CASH FLOWS
|----------------------------------------------------------------------------------------------------------

|                                                          |  | (Unaudited)  
|--------------------------------------------------------- |  | -------------
|                                                          |  | Quarter Ended
|                                                          |  |              
|(in thousands)                                            |  | April 1, 2000
|                                                          |  |              
|CASH FLOWS (USED) PROVIDED BY OPERATING ACTIVITIES:       |  |              
|Net income                                                |  | $            
|Adjustments to reconcile net income to net cash           |  |              
|provided by operating activities:                         |  |              
|Depreciation and amortization                             |  |              
|Deferred income taxes                                     |  |              
|Change in operating assets and liabilities:               |  |              
|Receivables                                               |  |              
|Inventories                                               |  |              
|Trade accounts payable                                    |  |              
|Other assets and liabilities, net                         |  |              
|                                                          |  |              
|Net cash (used) provided by operating activities          |  |              
|                                                          |  |              
|CASH FLOWS USED BY INVESTING ACTIVITIES:                  |  |              
|Capital expenditures                                      |  |              
|Investment in and loans to joint venture                  |  |              
|Purchase price adjustment related to net worth adjustment |  |              
|                                                          |  |              
|Net cash used by investing activities                     |  |              
|                                                          |  |              
|CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:       |  |              
|Net change in long-term borrowings                        |  |              
|Common stock purchased for treasury                       |  |              
|Net change in short-term bank loans                       |  |              
|Dividends paid on common stock                            |  |              
|Cash proceeds from stock options                          |  |              
|Net change in receivables sold                            |  |              
|                                                          |  |              
|Net cash provided (used) by financing activities          |  |              
|                                                          |  |              
|Net decrease in cash and cash equivalents                 |  |              
|Cash and cash equivalents, beginning of year              |  |              
|                                                          |  |              
|CASH AND CASH EQUIVALENTS, END OF PERIOD                  |  | $            
|                                                          |  |              

|See Notes to Consolidated Financial Statements.4
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 the Company's annual financial statements
except as modified for interim accounting policies which are within the
guidelines set forth in Accounting Principles Board Opinion No. 28, "Interim
Financial Reporting."  The interim
consolidated financial statements are unaudited.  In the opinion of management, all
adjustments, consisting of normal recurring accruals, necessary to present
fairly the financial position as of April 1, 2000 and the results of operations
and cash flows for the quarters ended April 1, 2000 and April 3, 1999 have been
included.  Interim results of
operations are not necessarily indicative of the results of operations for the
full year.
Note
2.  Dial/Henkel Joint
Ventures
In
April 1999, we formed Dial/Henkel LLC, a joint venture with Henkel KGaA of
Dusseldorf, Germany.  Dial and
Henkel each own 50% of this joint venture. 
The joint venture was formed to develop and market a range of enhanced
laundry products in North America. 
In July 1999, the joint venture acquired the Custom Cleaner home
dry-cleaning business.
We
account for our investment under the equity method of accounting.  The joint venture's results of
operations and our equity in net loss of the joint venture
included:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For the period ended: (in thousands) |  | April 1, 2000 |       
|------------------------------------ |  | ------------- | ------
|                                     |  |               |       
|JOINT VENTURE                        |  |               |       
|Net sales                            |  | $             | 17,810
|Loss before income taxes             |  |               | (9,136
|Net loss                             |  |               | (7,696
|DIAL EQUITY IN EARNINGS (LOSS)       |  |               |       
|**Dial equity in net loss**          |  | $             | (721  

|The
joint venture agreement provides 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 will pay a disproportionate share of the marketing
expenses incurred by the joint venture. 
As a result, in the first quarter of 2000, total marketing expenses were
$9.4 million of which Henkel paid $7.8 million directly.
Dial
incurs the cost to manufacture the joint venture products and bills the joint
venture monthly for the costs incurred. 
At April 1, 2000 the amount due from the joint venture was $3.4 million
and is included in Other current
assets.5
In
March 2000, we formed another joint venture with Henkel KGaA 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 to develop and market consumer detergent
and household cleaning products in Mexico. 
As discussed in Note 8, in May 2000, this joint venture acquired 80% of
Fabrica de Jabon Mariano Salgado S.A. de C.V.
Note 3.  Inventories
Inventories
consisted of the following at April 1, 2000:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(in thousands)             |  | April 1,2000 |         | December 31,1999
|-------------------------- |  | ------------ | ------- | ----------------
|                           |  |              |         |                 
|                           |  |              |         |                 
|Raw materials and supplies |  | $            | 52,851  |                 
|Work in process            |  |              | 8,428   |                 
|Finished goods             |  |              | 137,158 |                 
|                           |  |              |         |                 
|Total inventories          |  | $            | 198,437 |                 
|                           |  |              |         |                 

|Note
4.  Debt
Short-term
debt consisted of the following at April 1, 2000:
|--------------------------------------------------------------------------

|(in thousands)                                                                                                                                                         |  | April 1,2000 |         | December 31,1999 |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ------- | ---------------- | -
|                                                                                                                                                                       |  |              |         |                  |  
|                                                                                                                                                                       |  |              |         |                  |  
|Short-term bank borrowings, with interest rates   ranging between 6.66% and 6.28%.                                                                                     |  | $            | 139,839 |                  | $
|Argentina bank loan with interest at the bank's   short-term rate (11.4% at April 1, 2000), repricing monthly,   subject to call by the bank at the end of each month. |  |              | 11,968  |                  |  
|Current portion of State of Arizona Economic   Development Loan due beginning July of 2000   in equal installments over 10 years.                                      |  |              | 100     |                  |  
|                                                                                                                                                                       |  |              |         |                  |  
|Total short-term debt                                                                                                                                                  |  | $            | 151,907 |                  | $
|                                                                                                                                                                       |  |              |         |                  |  

|Long-term debt consisted of the following:
|------------------------------------------

|(in thousands)                                                                                                               |  | April 1,2000 |         | December 31,1999
|---------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ------- | ----------------
|                                                                                                                             |  |              |         |                 
|                                                                                                                             |  |              |         |                 
|State of Arizona Economic Development Loan due beginning July of 2000 in equal installments over 10 years.                   |  | $            | 900     |                 
|$200 million 6.5% Senior Notes due 2008, net of issue discount.                                                              |  |              | 198,195 |                 
|Commercial paper supported by the long-term revolving Credit Agreement, interest rates from 6.17% to 6.47% at April 1, 2000. |  |              | 211,455 |                 
|                                                                                                                             |  |              |         |                 
|Total long-term debt                                                                                                         |  | $            | 410,550 |                 
|                                                                                                                             |  |              |         |                 

|6
Note 5.  Equity
At
April 1, 2000, there were 105,608,074 shares of common stock issued and
93,978,834 shares outstanding.  At
April 1, 2000 and April 3, 1999, a total of 3,795,791 and 3,939,671,
respectively, of the issued shares were held by the Employee Equity Trust.  At April 1, 2000 and April 3, 1999, a
total of 10,734,991 and 1,751,534 shares of common stock, respectively, were
held in treasury.  The shares held
at April 1, 2000 included 218,725 shares valued at $5.2 million purchased as
part of a small shareholder selling/repurchasing program and 10,323,499 shares
valued at $204.3 million purchased as part of our stock repurchase
program.
Note
6.  Income Taxes
A
reconciliation between the statutory federal income tax rate of 35% and our
consolidated effective income tax rate for the quarters ended April 1, 2000 and
April 3, 1999 is as follows:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                            |  | April 1,2000 |   | April 3,1999 |  
|--------------------------- |  | ------------ | - | ------------ | -
|                            |  |              |   |              |  
|                            |  |              |   |              |  
|Federal statutory rate      |  | 35.0         | % | 35.0         | %
|Goodwill amortization       |  | 1.1          |   | 0.8          |  
|Foreign Sales Corp. benefit |  | (1.7         | ) | (0.5         | )
|State income taxes          |  | 2.3          |   | 3.3         
|Other, net                  |  | (2.2         | ) | (2.3         | )
|                            |  |              |   |              |  
|Effective income tax rate   |  | 34.5         | % | 36.3         | %
|                            |  |              |   |              |  

|Note 7.  Segments of an Enterprise
For
organizational, marketing and financial reporting purposes, we have organized
into three business segments:  (i)
Domestic Branded, (ii) International, and (iii) Commercial Markets and
Other.  The segments were identified
based on the types of products sold, the customer base and method of
distribution.
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 (Note 2) to the audited financial statements included in our
1999 Annual Report to Stockholders.7
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(in thousands)    |   | DomesticBranded |   | CommercialMarketsand Other |   | TotalDomestic |   | International |   | TotalContinuing
|----------------- | - | --------------- | - | -------------------------- | - | ------------- | - | ------------- | - | ---------------
|                 
|                  |   |                 |   |                            |   |               |   |               |   |                
|Net Sales:        |   |                 |   |                            |   |               |   |               |   |                
|Quarter ended:    |   |                 |   |                            |   |               |   |               |   |                
|April 1, 2000     | $ | 318,485         | $ | 16,121                     | $ | 334,606       | $ | 38,518        | $ | 373,124        
|April 3, 1999     |   | 339,049         |   | 16,157                     |   | 355,206       |   | 43,742        |   | 398,948        
|                  |   |                 |   |                            |   |               |   |               |   |                
|Operating Income: |   |                 |   |                            |   |               |   |               |   |                
|Quarter ended:    |   |                 |   |                            |   |               |   |               |   |                
|April 1, 2000     |   | 38,659          |   | 2,386                      |   | 41,045        |   | 2,137         |   | 43,182         
|April 3, 1999     |   | 42,736          |   | 2,326                      |   | 45,062        |   | 3,933         |   | 48,995         
|                  |   |                 |   |                            |   |               |   |               |   |                
|Assets at:        |   |                 |   |                            |   |               |   |               |   |                
|April 1, 2000     |   | 1,155,093       |   | 4,222                      |   | 1,159,315     |   | 162,480       |   | 1,321,795      
|December 31, 1999 |   | 1,079,722       |   | 10,058                     |   | 1,089,780     |   | 179,906       |   | 1,269,686      

|Note
8.  Subsequent
Events
In
May 2000, Nuevo Federal, S.A., our Argentine subsidiary, acquired the Plusbelle
branded hair care business in Argentina from Revlon, Inc.  This transaction will be accounted for
under the purchase method of accounting.
In
May 2000, Dial/Henkel Mexico S.A. de C.V. acquired 80% of  Fabrica de Jabon Mariano Salgado, S.A.
de C.V., a Mexican manufacturer and marketer of detergents and soaps.  This transaction will be accounted for
under the equity method of accounting.
On
April 25, 2000, we announced our intention to acquire the Coast brand from The Procter &
Gamble Company.  Definitive
agreements have been executed and the transaction is expected to close in the
second quarter.  This transaction
will be accounted for under the purchase method of
accounting8

Item 2.  Management Discussion & Analysis of Results of Operations and Financial Condition
Recent Developments
In
the first quarter of 2000, we announced that we expect our earnings to be down
for the first half of 2000 versus our plan and the same period a year ago.  We believe certain events leading to
these lower than expected earnings will impact both sales and gross margin for
the first half of 2000.  The factors
relating to the sales shortfall are primarily:
The consolidation and balancing of inventory that occurred when our second largest customer converted from buying direct to buying through two of our existing wholesalers;
The continuing price war between two of our competitors in the premium segment of the Argentina detergent market, which has had an adverse impact on our value brand detergent in Argentina;
A shortfall on the sale of Armour canned meats due to increased Y2K-related retail inventory buildup at December 31, 1999, coupled with a price increase we took in January that has not been matched by competition.In
addition, our sales are now lower and the mix of products sold is different than
earlier anticipated and this could have an adverse impact on our gross margin
and earnings.
Gross
margin in the first half will be impacted by the reduced manufacturing overhead
absorption associated with the lower than expected sales volumes and the
increasing cost of petroleum that affects, among other things, transportation
and distribution expenses.
See
additional discussion of matters that may impact our results in Exhibit 99 to
this Form 10-Q.

Results
of Operations - First Quarter 2000 Compared to First Quarter
1999
Net
sales for the quarter decreased 6.5% to $373.1 million from $398.9 million in
the same period in 1999.  Our
Domestic Branded segment decreased 6.1% to $318.5 million from $339.0 million in
the same period last year primarily as a result of year over year declines in
Dial, Purex and Armour offset by increases in Renuzit and Specialty Personal
Care.  Net sales of our
International segment decreased 11.9% to $38.5 million from $43.7 million
primarily as a result of the continuing detergent price war in Argentina.  Our Commercial Markets and Other segment
was flat in comparison to the same period in 1999.  The factors primarily attributing to the
declines in our segments are discussed above.
Gross
margin for the quarter increased 20 basis points to 49.5 percent from 49.3
percent in the same period in 1999. 
Gross margin was positively impacted by improvements in manufacturing and
procurement, but offset by the reduced overhead absorption associated with lower
sales, increasing costs of petroleum that affects, among other things,
transportation and distribution expenses, and the mix of products
sold.
Selling,
general and administrative expenses are down 4.2% to $141.4 million from $147.6
million in the same period in 1999. 
This decrease is the result of lower advertising and trade spending in
the first quarter of 2000 compared to the same period last year when we had a
number of new product launches.  For
2000, new product launches are primarily planned for later in the year.  Selling expenses were also lower in the
first quarter of 2000 due to lower sales volumes.
9
Interest
and other expenses increased 15.3% to $9.6 million from $8.4 million in the same
period in 1999.  Higher interest
expense is primarily attributable to increased borrowings to fund our stock buy
back program with 5.8 million shares repurchased in the first quarter of 2000
and the elimination of the sale of receivables program that occurred in the
first quarter.
Our
share of the loss in the joint venture between us and Henkel KGaA was $0.7
million in the first quarter.  The
joint venture had high marketing expenses for the first quarter due to the
launch of Purex Advanced in December 1999 and the restage of Custom Cleaner,
both of which negatively impacted first quarter results.
Our
effective tax rate decreased to 34.5% from 36.3% in the same period in
1999.  This decrease is primarily
attributable to the full utilization of state tax programs and the use of a
foreign sales corporation.
Net
income was $21.5 million, equivalent to diluted earnings of $.23 per share for
the first quarter of 2000 compared to net income of $25.9 million, equivalent to
diluted earnings of $.26 per share for the first quarter of 1999.  This decrease in earnings is primarily
attributable to the sales shortfall explained above.

**Liquidity and Capital Resources**
Total
debt increased $201.3 million to $562.4 million from $361.1 million at December
31, 1999.  The increase is primarily
attributable to the funding of our previously announced share repurchase program
and the elimination of the sale of receivables program.  During the first quarter, we completed
our $75.0 million 1999 share repurchase program and accelerated the $75.0
million 2000 program.  At April 1,
2000, we have used $50.1 million of the 2000 program to repurchase
shares.
During
the first quarter of 2000, we used $29.4 million of cash from operations
compared to generating $0.5 million for the same period in 1999.  The increase in use of cash was
primarily attributable to the timing of our tax payments, a decrease in trade
accounts payable, an increase in inventories due to  lower sales, and lower net
income.
Capital
expenditures for the first quarter of 2000 were $6.2 million.  Capital spending in 2000 is expected to
approximate $60.0 million and will be concentrated primarily on equipment and
information systems that provide opportunities to reduce manufacturing, logistic
and administrative costs.  However,
such plans are dependent on the availability of funds, as well as identification
of projects with sufficient returns. 
As a result, there can be no assurance as to the quantity and the type of
capital spending in the future.
As
part of our business strategy, we routinely review and evaluate the acquisition
of domestic and international companies that market consumer and other
products.  We may seek additional
debt and/or equity financing as necessary to fund any potential
acquisitions.  During March and
April of 2000, we announced our intentions to make certain acquisitions or
investments in the second quarter of 2000. 
These acquisitions or investments are discussed in Note 8 of the
Consolidated Financial Statements.
10
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 requirements of Title VII of the Civil Rights Act of
1964 and to recover unspecified compensatory and punitive damages.  We have denied the EEOC's
allegations.  Discovery has been
completed and we intend to file dispositive motions.  Assurances cannot be given regarding the
ultimate outcome of this matter.
Item
6.  Exhibits and Reports on Form
8-K
(A)     Exhibits
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 March 10, 2000, reporting that Dial
issued a press release relating to its financial earnings outlook for the first
half of 2000.
We
filed a Current Report on Form 8-K, dated April 25, 2000, reporting that Dial
issued a press release relating to its financial results for the first quarter
of 2000 and a press release relating to the purchase of the Coast brand from The Procter and
Gamble Company.11
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.
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|The Dial Corporation(Registrant)May 16, 2000                                                                
|------------------------------------------------------------------------------------------------------------
|/s/  Susan J. Riley                                                                                         
|                                                                                                            
|Executive Vice President and Chief Financial Officer
      (Chief Accounting Officer and Authorized Officer)

|12
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