Dial Replaces Top 2 Execs; Issues Earnings Warning

Dial Corp.’s board replaced its top two executives as the consumer product maker warned it would fall short of Wall Street’s earnings expectations for the year.

The company, whose brands include Dial soap, Purex laundry detergent and Armour Star canned meats, said Tuesday that it had named board member Herbert M. Baum, the No. 2 executive at toy maker Hasbro Inc., its new chairman, chief executive and president.

Baum replaces Malcolm Jozoff, who resigned those posts and his seat on the board. Jozoff had been chairman and chief executive since 1996.

Susan J. Riley, chief financial officer since 1997, also resigned. Jack Tierney, Dial’s controller, was named acting CFO.

The decision to change top management was made last week during a board retreat, Baum said during a conference call Tuesday.

The management shake-up came as Dial told Wall Street it does not expect to meet consensus earnings estimates of 77 cents a share for the year. Baum said he was not sure how large the shortfall would be, but he expected to have revised numbers in the next 30 days.

Baum said a glut of Dial soap has caused some of the firm’s biggest problems while it is trying to launch a reformulated version.

Baum, 63, joined Hasbro as president and chief operating officer last year, and previously held key leadership posts at Quaker State Corp. and Campbell Soup Co. He has been an outside member of the Dial board since 1997.

Dial shares fell 88 cents to close at $11.94 on the New York Stock Exchange.