Filed pursuant to Rule 424(b)(2)

$250,000,000

7% Senior Notes due 2006

      This is a public offering of $250,000,000 of 7% Senior Notes due August 15, 2006. Interest on the notes is payable on August 15 and February 15 of each year, beginning February 15, 2002. The notes are unsecured and unsubordinated obligations and will rank equally with all of the our existing and future unsecured and unsubordinated obligations. As of June 30, 2001, on a pro forma basis after giving effect to the offering, we will have approximately $529.9 million of senior unsecured indebtedness, consisting of $248.5 million aggregate principal amount of indebtedness (net of issue discount) under the notes, $198.5 million (net of issue discount) in senior notes due 2008, and $82.9 million of long-term bank borrowings.

      We can redeem the notes prior to maturity, in whole or in part, at a redemption price equal to the make-whole payment described in this prospectus supplement. There is no sinking fund for the notes. We do not intend to list the notes on any securities exchange.

       Investing in the notes involves risks. See “Risk Factors” which begin on page S-7.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement, the accompanying prospectus or any pricing supplement is truthful or complete. Any representation to the contrary is a criminal offense.

      The underwriters expect to deliver notes in book-entry form through the facilities of The Depository Trust Company against payment in New York, New York on or about August 17, 2001

Joint Book-Running Managers

Co-Managers

The date of this prospectus supplement is August 14, 2001.

      You should rely only on the information contained in this prospectus supplement, the accompanying prospectus and the information incorporated by reference. We have not authorized anyone to provide you with different information. We are not making an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where the offer, sale or solicitation is not permitted. You should assume that the information appearing in this prospectus supplement is accurate as of the date on the front cover only. Our business, financial condition, results of operations and prospectus may have changed since that date.

TABLE OF CONTENTS

Prospectus Supplement

Prospectus

Dial®, Purex®, Purex Advanced®, Purex Toss “n Soft®, Purex Tabs®, Renuzit®, Armour®, Armour Star®, Nature’s Accents®, Dial Complete®, Dial Aloe®, Liquid Dial®, Coast®, Tone®, Pure & Natural®, Zout®, Trend®, Borateem®, Vano®, Sta-Flo®, Boraxo®, 20 Mule Team®, Fels Naptha®, La France®, Treet®, Cream®, Freeman®, Sarah Michaels®, Plusbelle®, and Custom Cleaner® and related names used in this prospectus supplement are our registered trademarks or are licensed for our use. This prospectus supplement and the accompanying prospectus also use trademarks of other companies and businesses.

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Prospectus Supplement Summary

      The following material is qualified in its entirety by reference to the detailed information and financial statements incorporated by reference in this prospectus supplement and accompanying prospectus. You should review this information before investing in our notes.

      Unless otherwise noted in this prospectus supplement, all market share data are as of the 52 week period ended July 1, 2001, and are based on sales in the U.S. market, which with respect to soap products is measured by ounces sold, with respect to detergent products is measured by standard cases sold and with respect to air fresheners and canned meats is measured by units sold.

The Company

      We are a leading consumer products company, marketing products under such well-known brand names as Dial® soaps, Purex® detergents, Renuzit® air fresheners and Armour® canned meats. Dial is the number one brand of soap in America; Purex is the second largest brand of laundry detergent in the United States; Armour is the second largest brand of canned meats in the United States and Renuzit is the second leading brand of Air Freshener in the United States. We consider these brands to be our “core business”. We also have an International business, as well as a domestic Specialty Personal Care business that markets skin, hair, bath and foot care products.

      We have been an independent company since August 1996. From that time through the end of 1999, we followed a strategy of focusing on our core business and were successful in improving profits and cash flows. Following earnings disappointments in 2000, we brought in a new management team in the third quarter of 2000, including a new Chief Executive Officer and Chief Financial Officer.

      Herbert Baum, our Chief Executive Officer, has over 22 years of experience in consumer products. Since this transition, we have undertaken a number of strategic imperatives designed to return Dial to the level of profits and cash flows experienced from 1996 to 1999:

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      As a result of these measures, our 2001 financial results have begun to show significant improvement. In this regard, we recently announced that our net sales, operating income, and net income for the six months ended June 30, 2001 were $830.7 million, $67.6 million and $27.8 million as compared to $781.9 million, $52.6 million and $22.6 million for the same period a year ago. In addition, we have reduced our total interest-bearing indebtedness by $129.5 million from $657.0 million at June 30, 2000 to $527.5 at June 30, 2001.

      During 2001, we adjusted our list prices and trade promotion spending on selected personal cleansing and laundry care products to more closely align with our shelf pricing strategies. Because the reduction in list price is offset by a reduction in trade promotion spending, there is no effect on our net earnings. Without giving effect to these adjustments, our net sales, gross profit, and gross profit margin for the six months ended June 30, 2001, would have increased an additional $20.1 million, $20.1 million and 1.2%, respectively.

      On August 3, 2001, we announced that our Board of Directors had reviewed our options as a company and concluded that our long-term interests would be best served if we were part of a larger enterprise. In this regard, although we will continue to focus on improving our operating results as a stand alone company, we believe that we should concurrently explore our opportunities to become part of a larger company, with each pursuit intended to maximize shareholder value. These opportunities may include exploring transactions with multiple parties.

      No time constraints have been set for any transaction. Accordingly, there is no assurance that any sale, merger or other transactions involving us or any of our businesses will occur in the near future or at all.

      Our corporate headquarters and principal executive offices are located at 15501 North Dial Boulevard, Scottsdale, Arizona 85260-1619, and our telephone number is (480) 754-3425.

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The Offering

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Summary Consolidated Financial Data

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Special Note of Caution Regarding Forward-Looking Statements

      This prospectus supplement and the accompanying prospectus contains or incorporates forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this prospectus supplement, the accompanying prospectus or incorporated documents, the words “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements may include, but are not limited to, the following:

      These statements are based on management’s beliefs, as well as on assumptions made by and information currently available to management, and involve risks and uncertainties, many of which are beyond our control. Factors that could cause actual results or conditions to differ from those anticipated by forward-looking statements include those more fully set forth in “Risk Factors” in this prospectus supplement and in the accompanying prospectus and in those documents incorporated by reference from our public filings with the SEC. Our actual results could differ materially from those expressed in any forward-looking statements made by or on behalf of us. In light of these risks and uncertainties, there can be no assurance that the forward-looking information included or incorporated by reference in this prospectus supplement or accompanying prospectus will in fact transpire.

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Risk Factors

      You should carefully consider the following risk factors and other information in this prospectus supplement, accompanying prospectus and information incorporated into this document before investing in our notes.

We are taking a number of steps designed to improve our operations and financial results, including the restructuring and special charges taken in the second and third quarters of 2000. We may not achieve the benefits that we expect from these measures, which could harm our cash flow from operations.

      We are taking a number of steps designed to improve our operations and financial results. For example, in the second and third quarters of 2000, we announced restructuring and special charges totaling $98 million. These charges and changes to our business operations are expected to produce cost savings going forward. However, we cannot make any assurance that these charges or any of the changes made to our business operations will achieve the benefits that we expect. The expected timing, estimated costs of restructuring and special charges and the projected savings that will result from these charges are based upon management’s judgement in light of the circumstances and estimates at the time the judgements were made, may change as future events evolve, and the changes may be material.

We are considering selling substantial assets or the entire company. There can be no assurance that we will sell substantial assets or the entire company in the near future or at all. The uncertainty caused by our consideration of these alternatives could harm employee recruiting and retention and impair our relationships with our customers, suppliers and lenders. Note holders have rights to put their notes on a sale of the company or significant assets only in certain circumstances.

      We are considering selling substantial assets, such as our Specialty Personal Care business, Argentina operations or selected plants, or the entire company. In this regard, in August 2001, we announced that our Board believes that we may be best served by becoming a part of a larger enterprise. We cannot assure you that any transactions will occur or, if transactions do occur, that they will improve our operating results or financial condition, improve our creditworthiness or be on terms favorable to Dial. Moreover, the uncertainty created by this environment may adversely impact our ability to retain employees and our relationships with customers, suppliers and lenders.

      Under the indenture governing the notes, holders have put rights, in the case of an asset sale, only if a sale of assets alone or with other sales occurring after the notes are issued (in each case, outside the ordinary course of business), yields gross proceeds to us of $500 million or more in the aggregate and results in a ratings downgrade from our current senior debt rating, or, in the case of a sale of the company, the sale results in a ratings downgrade from our current senior debt rating. Accordingly, the sale of a business below the relevant dollar threshold will not give the holders of the notes the right to put the notes to Dial, even if its credit ratings are downgraded. Further, if a put right arises, and is not exercised by a holder, or if Dial does not have the ability to satisfy the put, your risk as a holder may increase. In addition, in general, the proceeds of asset sales must first be used to pay down, and will reduce the commitment of our lenders under, our senior credit facility, which would reduce our ability to satisfy our put rights to noteholders on asset sales.

The possible divestiture or determination of goodwill impairment of our Specialty Personal Care business may lead to an asset writedown in the range of $180 to $200 million after tax, which would reduce our net worth correspondingly.

      As previously disclosed, we are reviewing strategic alternatives with respect to our specialty personal care business, while working aggressively to improve the performance of this business. Preliminary discussions with interested parties have taken place; however, no decision concerning the possible sale of this business has been made. At this time, we believe that if a decision is made in the future to divest of this business, a write-down of assets to their estimated market value would be required. Based on current estimates, such a write-down would be in the range of $180 to $200 million after tax, which would reduce our net worth correspondingly.

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      In addition, new accounting standards for testing goodwill for impairment will be in effect in the first quarter of 2002. The adoption of the standard will result in a goodwill impairment charge currently expected to be in the range of $180 million to $200 million after tax under these new standards.

We have recently developed and commenced sales of a number of new products which, if they do not gain widespread customer acceptance or if they cannibalize sales of existing products, could harm our efforts to improve our financial performance.

      We recently introduced a number of new products in the soap, detergent and air freshener categories. In addition, we have committed to increase development efforts in our core brands. The development and introduction of new products involves substantial research, development and marketing expenditures, which we may be unable to recoup if our new products do not gain widespread market acceptance or we do not execute a product roll out effectively. In addition, if our new products merely cannibalize sales of existing Dial products, our financial performance would be harmed. Either of these events could harm our credit rating for our debt or our ability to repay the principal or interest on our indebtedness.

We may discontinue products or product lines, which could result in returns, asset write-offs and shut down costs.

      In the last several months, we have discontinued certain products and product lines, which resulted in returns from customers, asset write-offs, and shut down costs. We may suffer similar results in the future to the extent we discontinue products that do not meet expectations or no longer satisfy consumer demand. Product returns, write-offs or shut down costs would reduce our cash flow and earnings.

As the result of a recent accounting pronouncement, our reported sales volumes will be lower than they otherwise would have been, which could potentially harm our credit rating and our ability to attract future financing.

      Beginning in the first quarter of 2002, the accounting rules regulating how we record net sales will be changed. We will be required to record most of our trade promotion, coupon and rebate costs as a reduction in our level of sales. We currently record most of our trade promotion, coupon and rebate costs as a selling, general and administrative expense. For 2001, we expect to incur approximately $407 million of trade promotion, coupon and rebate costs. Although all companies in our industry will face similar issues in modifying their accounting practices, and investors are on notice of these changes, decreased levels of our reported sales may cause investors, financial analysts and rating services to view us, and our industry as a whole, less favorably. In addition, we believe our competitors generally record relatively less trade promotion expense than we do, so our sales are currently expected to decline relatively more than those of our competitors as a result of the new accounting rule. As a result, our attractiveness to investors, financial analysts and rating agencies may be further eroded.

We face intense competition in a mature industry that may require us to increase expenditures and lower profit margins to preserve or maintain our market share. Unless the markets in which we compete grow substantially, a loss of market share will result in reduced sales levels and poorer operating results.

      Currently, we depend primarily on sales generated in U.S. markets (88% of sales in 2000). U.S. markets for consumer products are mature and characterized by high household penetration, particularly with respect to our most significant product categories, including detergents and bar soaps. We may not be able to succeed in implementing our strategies to increase domestic revenues. Our unit sales growth in domestic markets will depend on increasing usage by consumers, product innovation and capturing market share from competitors.

      The consumer products industry, particularly the detergent, personal care and air freshener categories, is intensely competitive. To protect our existing market share or to capture increased market share, we may need to increase expenditures for promotions and advertising and to introduce and establish new products.

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      Many of our competitors are large companies, including The Procter & Gamble Company, Lever Brothers Co., Colgate-Palmolive Company, and S.C. Johnson & Son, Inc., which have greater financial resources than we do. They have the capacity to outspend us in an attempt to take market share from us.

Price-cutting measures in response to competitive pressures could result in decreased profit margins.

      Consumer products, particularly those that are value-priced, are subject to significant price competition. From time to time, we may need to reduce the prices for some of our products to respond to competitive and consumer pressures and to maintain market share. Any reduction in our prices to respond to these pressures would harm our profit margins. In addition, if our sales volumes fail to grow sufficiently to offset any reduction in margins, our results of operations would suffer.

Providing price concessions or trade terms that are acceptable to our trade customers, or our failure to do so, could adversely affect our sales and profitability. In addition, reductions in inventory by our trade customers, including as a result of consolidations in the retail industry, could adversely affect our sales.

      Because of the competitive environment facing retailers, we face pricing pressure from these customers. Many of our trade customers, particularly our high-volume retail store customers, have increasingly sought to obtain pricing concessions or better trade terms. These concessions or terms could reduce our margins. Further, if we are unable to maintain price or trade terms that are acceptable to our trade customers, they could increase product purchases from our competitors, which would harm our sales and profitability. In addition, from time to time our retail customers have reduced inventory levels in managing their working capital requirements. Any reduction in inventory levels by our retail customers would harm our operating results. In particular, consolidation within the retail industry could potentially reduce inventory levels maintained by our retail customers, which could adversely impact our results of operations. Our performance is also dependent upon the general health of the economy and of the retail environment in particular and could be significantly harmed by changes affecting retailing and by the financial difficulties of retailers.

Loss of our principal customers could significantly decrease our sales and profitability.

      Our top ten customers accounted for 50%, 42% and 40% of net sales in 2000, 1999 and 1998 respectively. Wal-Mart, including its affiliate Sam’s Club, was our largest customer, accounting for 21% of net sales in 2000, 18% of net sales in 1999, and 17% of net sales in 1998. Wal-Mart and Sam’s Club accounted for 21% of net sales for the six months ended June 30, 2001. The loss of or a substantial decrease in the volume of purchases by Wal-Mart or any of our other top customers could harm our sales and profitability.

Price increases in certain raw materials or energy costs could erode our profit margins, which would harm our operating results.

      Rapid increases in the prices of certain raw materials or continued increases in energy costs could significantly impact our profit margins. Tallow (a key ingredient in Dial bar soaps) has experienced price fluctuations within the range of $0.09 and $0.28 per pound from January 1, 1995, to June 30, 2001. Recently, the price of tallow has been trading at the lower end of this historical range. If prices were to increase, we may not be able to increase the prices of our Dial bar soaps to offset these increases. In addition, we depend on a single supplier for Triclosan, the antibacterial agent that is the active ingredient used in Liquid Dial products. Although we have an adequate supply of Triclosan for our current and foreseeable needs, a significant disruption in this supply could harm our operating results.

We have made, and may continue to make, acquisitions that prove unsuccessful or strain or divert our resources.

      Over the past three years, we have made several acquisitions and entered into two joint ventures. We may make additional acquisitions or substantial investments in complementary businesses or products in the future.

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The FDA could impose standards that negatively impact our ability to market some of our products as antibacterial, which could result in compliance costs and could make our products less attractive to our customers.

      Since the 1970s, the Food and Drug Administration has regulated antibacterial soaps and hand washes under a proposed regulation. Although the proposed regulation has not been finalized, the FDA ultimately could set standards that result in limiting or even precluding soap manufacturers from using some current antibacterial ingredients or making antibacterial claims for some product forms, such as bar soap. Dial, which uses the antibacterial ingredient Triclosan in Liquid Dial and Triclocarban in Dial bar soap, emphasizes the antibacterial properties of its soap products in its marketing campaigns and product labeling. Any final FDA regulation that limits or precludes this type of advertising could require Dial to develop new marketing campaigns, develop new products or utilize different antibacterial ingredients in its products, all of which could make our products less attractive to customers and could seriously harm our business.

Our international business exposes us to currency fluctuations, limitations on foreign investment, import/

      In 2000, 12% of our sales were generated outside U.S. markets. To date some of our international acquisitions and joint ventures have not yielded the benefits we had anticipated. Further, these operations involve exposure to currency fluctuations, limitations on foreign investment, import/export controls, nationalization, unstable governments and legal systems, and the additional expense and risks inherent in operating in geographically and culturally diverse locations, which could harm our sales and cash flows.

We could become the subject of adverse publicity or product recalls that negatively impact our operations.

      Adverse publicity regarding our products could impact the sales of our products. Some news broadcasts by major U.S. television and radio networks have focused on the use of antibacterial agents to kill germs on various surfaces. Triclosan, the active ingredient in Liquid Dial, also has been a focus of these broadcasts. Although none of the broadcasts disputed that Triclosan kills germs on the skin, some third party experts did question whether it provides any additional protection beyond that provided by nonantibacterial soap products. Although we have test results that we believe prove that Triclosan provides consumers with additional protection in limiting exposure to bacteria-related diseases, we cannot assure you that our Triclosan products, or other products, will not be the subject to adverse publicity in the future.

      From time to time, consumer product companies, including Dial, have had to recall certain products for various reasons. The costs of recall or other related liabilities could materially lower our profit margins. Adverse publicity regarding any product recalls also could depress our sales.

      In addition, we share the use of the Armour trademark for food products with ConAgra Inc., the manufacturer of Armour-branded non-canned meat products. Accordingly, we face the added risk that consumer preferences and perceptions with respect to any of our Armour products may be influenced by adverse publicity affecting any of the Armour-branded products of ConAgra, Inc.

We may incur unexpected expenses due to environmental, health or safety matters.

      We are subject to a variety of environmental and health and safety laws in each jurisdiction in which we operate. These laws and regulations pertain to our present and past operations. Although we currently do not

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Act, four of which are currently active. In addition, in 1999 and in prior years we used nonlyphenol ethoxylate as an ingredient in our liquid and powder detergent products. Certain environmental and regulatory groups have raised concerns regarding the toxicity of compounds produced from nonlyphenol ethoxylate. As of June 30, 2001, we have accrued in our financial statements approximately $0.5 million in reserves for expenses related to environmental matters. We believe our reserves are adequate, but these costs are difficult to predict with certainty.

Loss of key managerial personnel could negatively impact our operations.

      Our operation requires managerial expertise. Of our current key personnel, only our chief executive officer has an employment contract with us. We cannot assure you that any of our key employees will remain employed by us. If we lose any of our key personnel, our business could suffer.

Use Of Proceeds

      The net proceeds from the sale of the notes are estimated to be approximately $246.1 million. We intend to use the net proceeds from the sale of the notes to repay a majority of our borrowings under our revolving credit agreement. At June 30, 2001, the following amounts were outstanding under our credit agreement: $250 million due July 2005 and $79 million due May 2002, which in the aggregate have a weighted average interest rate of 4.657% per annum. A portion of the repayments will permanently pay down our credit facility, reducing our total borrowing capacity under the credit agreement to approximately $325 million.

Ratio Of Earnings To Fixed Charges

      The following table shows our ratio of earnings to fixed charges for the periods indicated. For purposes of this ratio, earnings consist of earnings before income taxes plus fixed charges. Fixed charges consist of interest expense and the estimated interest portion of rent expense. Prior to August 15, 1996, we were a subsidiary of another public company, Viad Corp. Interest expense during that period was incurred primarily on advances from our former parent company that bore interest at the prime lending rate. The average balance of interest bearing advances from our former parent company prior to our spin-off from Viad Corp. was approximately $160 million for 1996. The 1996 column also reflects restructuring charges, asset writedowns and spin-off transaction costs of $60 million.

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Capitalization

      The following table sets forth our consolidated capitalization (i) as of June 30, 2001 and (ii) as adjusted to give effect to the issuance and sale of the notes pursuant to this offering and the application of the net proceeds. You should read the following table in conjunction with our selected consolidated financial information included elsewhere, and the consolidated financial statements and the notes thereto incorporated into, this prospectus supplement and accompanying prospectus.

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Selected Consolidated Financial Information

      The following table presents selected financial information derived from our consolidated financial statements. The selected consolidated balance sheet data as of December 31, 2000, and December 31, 1999, and the consolidated income statement data for each of the three fiscal years in the period ended December 31, 2000, have been derived from our audited consolidated financial statements which are incorporated into this prospectus supplement and accompanying prospectus. The selected consolidated balance sheet data as of December 31, 1998, January 3, 1998 and December 28, 1996, and consolidated income statement data for the fiscal years ended January 3, 1998 and December 26, 1996 have been derived from our audited consolidated financial statements which are not included in this prospectus supplement. The consolidated balance sheet data as of June 30, 2001 and July 1, 2000 and consolidated income statement data for the six months ended June 30, 2001 and July 1, 2000 were derived from our unaudited consolidated financial statements which are incorporated in this prospectus supplement and accompanying prospectus. In the opinion of our management, the unaudited consolidated financial statements include all material adjustments necessary to present fairly the information set forth therein. Operating results for the first six months ended June 30, 2001 are not necessarily indicative of the results that may be expected for the full fiscal year. The following data should be read in conjunction with our consolidated financial statements and notes thereto, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the other financial information included or incorporated by reference into this prospectus supplement and accompanying prospectus.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations

      The following discussion of the financial condition and results of operations of our business should be read in conjunction with “Selected Consolidated Financial Information” and our consolidated financial statements and notes thereto which incorporated into this prospectus supplement.

      For organizational, marketing and financial reporting purposes, we have organized our business into four segments:

      In addition, since 1999, we have been involved in one or more joint ventures with Henkel-KGaA of Düsseldorf, Germany. One joint venture was formed to develop and market a range of enhanced laundry products in North America, and the other was formed to develop and market consumer detergent and household cleaning products in Mexico. We reorganized these projects in 2000, and sold our interest in the Mexican-based joint venture to Henkel.

Recent Developments Regarding SFX01

      In the third quarter of 2000, management outlined an initiative labeled “SFX01”. This three-step initiative can be summarized as follows:

      S     We intended to Stabilize our strong businesses.

      F     We intended to Fix marginal businesses or jettison them.

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

      01     We intended to complete this initiative during 2001.

      On August 3, 2001, we concluded our SFX01 initiative and announced that our Board of Directors had reviewed our options as a company and decided that the long-term interests of Dial and its shareholders would be best served if Dial were part of a larger enterprise. In this regard, although we will continue to focus on improving our operating results as a standalone company, the Board believes that we should concurrently explore opportunities for Dial to become part of a larger company, with each pursuit intended to maximize

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      No time constraints have been set for any transaction and any decision regarding any potential transactions will be based upon the best interests of Dial’s shareholders. Accordingly, there is no assurance that any sale, merger or other transactions involving Dial or any of its businesses will occur in the near future or at all. In addition, decisions made in the course of continuing to improve our operating results could result in Dial recording additional special or restructuring charges or additional asset writedowns.

Restructuring & Special Charges

  Third Quarter 2000 Special Charge

      On October 18, 2000, we announced a special charge related to the Specialty Personal Care business, the Dial/ Henkel joint ventures, and severance costs for prior management. We recorded $73.9 million ($48.9 million after tax or $0.53 per share) related to this special charge during 2000. We do not anticipate that any additional charges to net income will be recorded in 2001 with respect to this special charge. The current period activity relating to the third quarter 2000 special charges is summarized below:

      The income statement classification of amounts recorded with respect to the third quarter 2000 special charges have been previously disclosed and no additional amounts were charged to net income in the first six months of 2001.

      We have sold or disposed of a portion of the discontinued product inventories and expect to sell or dispose of the remainder in 2001. In addition, reserves were established to fund promotional activity for our customers to discontinue SKU’s currently in our customers’ inventories and for expected returns and deductions from our customers. Cash requirements for the special charges currently are expected to be funded from normal operations.

  Second Quarter 2000 Restructuring

      On June 28, 2000, we announced a restructuring charge designed to improve profitability and operational efficiencies. We recorded charges of $23.9 million ($14.9 million after tax or $0.16 per share) for the second quarter 2000 restructuring, of which $21.1 million ($13.8 million after tax or $0.15 per share) was recorded during the second quarter of 2000. The purpose of the second quarter 2000 restructuring was to close our Bristol, Pennsylvania dry detergent plant, to consolidate the manufacturing and distribution functions of our Specialty Personal Care business, and to restructure our domestic and international sales organization. We do not anticipate that any additional charges to net income will be recorded in 2001 with respect to this

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      The income statement classification of amounts recorded with respect to the second quarter 2000 restructuring have been previously disclosed and no additional amounts were charged to net income in the first six months of 2001.

      The remaining reserves relating to employees separations and other exits costs are expected to be utilized through 2002. The Bristol, Pennsylvania dry detergent facility was sold in April 2001. Cash requirements for the restructuring currently are expected to be funded from normal operations.

      The expected timing and estimated amount of costs and projected savings related to the third quarter 2000 special charges and second quarter 2000 restructuring are based on management’s judgment in light of circumstances and estimates at the time the judgments were made. Accordingly, such estimates may change as future events evolve.

  Adjustments to List Prices and Trade Allowances

      Beginning in the first quarter of 2001, we adjusted our list prices and trade promotion spending on selected personal cleansing and laundry care products to more closely align with our shelf pricing strategies. Because the reduction in list price is offset by a reduction in trade promotion spending, there is no effect on our net earnings. This change, however, does impact net sales, gross profit, gross profit margin, selling, general and administrative expense and operating margin. The effect of these adjustments for the first six months of 2001 is set forth below:

Comparison of the First Six Months of 2001 with the First Six Months of 2000

      Net sales for the first six months of 2001, including the effect of the list price adjustment in 2001, increased 6.2% to $830.7 million from $781.9 million in the same period in 2000. This increase is primarily a result of an 8.3% increase in our Domestic Branded segment and an increase in our International segment of 27.0%, offset in part by a 50.1% decrease in our Specialty Personal Care segment and an 11.3% decrease in our Commercial Markets and Other segment. The acquisitions of the Coast, Plusbelle and Zout businesses contributed $58.4 million to our net sales in the first six months of 2001 compared to $11.4 million in the first six months of 2000. This increase is largely the result of completing the acquisitions in mid-second quarter of 2000.

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      Net sales in our Domestic Branded segment, including the effect of the list price adjustment in 2001, increased 8.3% to $670.0 million from $618.8 million in the same period last year. Excluding the effect of the list price adjustment, net sales information for the businesses included in our Domestic Branded segment is set forth below: