Dial Corp announces possible sale of interest in Greyhound Lines of Canada; Bus company's study of new air service could mean reducing or eliminating U.S. ownership.PHOENIX--(BUSINESS WIRE)--Nov. 17, 1994--The Dial Corp (NYSE NYSE See: New York Stock Exchange :DL) Thursday announced that it is considering selling all or part of its interest in Greyhound Lines of Canada Calgary-based Greyhound Canada is a subsidiary of FirstGroup plc and linked with Dallas-based Greyhound Lines (also known as Greyhound USA). History In 1929 Greyhound Canada was founded as Canadian Greyhound Coaches, Limited, operating in Alberta. Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :GHL GHL Guideline Harvest Level (commercial fishing) GHL Greenland Halibut ), the largest intercity bus transportation company in Canada. The announcement is tied to Canada Greyhound Lines' decision this week to study the development of an air service that would link its bus line to selected Canadian airports, forming a new, low-cost transportation system. Under Canadian law, foreign firms cannot own or control more than 25 percent of a company that operates an airline in Canada. Dial owns 69 percent of Canada Greyhound Lines Greyhound Lines is the largest inter-city common carrier of passengers by bus in North America , serving 2,200 destinations in the United States. It was founded in Hibbing, Minnesota, USA, in 1914 and incorporated as "The Greyhound Corporation" in 1926. . "The Dial Corp strongly supports Canada Greyhound Lines in its efforts to aggressively meet the transportation needs of Canada and its citizens," said John W. Teets, Dial chairman, president and chief executive officer. "We will work closely with Canada Greyhound Lines' management to find the best possible terms for the sale of all or part of our interest in its bus division. Canada Greyhound Lines' board of directors and its management are to be commended for positioning the company for future success." A $3.6 billion company based in Phoenix, Dial has successfully completed a major restructuring to focus on consumer products and selected services. Teets indicated that the possible sale of Dial's interest in Canada Greyhound Lines would continue to reflect the new corporate focus. For the third quarter, Dial's revenues reached $912.5 million, up from $770.4 million for the same period last year. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the reached $45.4 million, up 18 percent on a per-share basis from last year's $37.2 million. Greyhound Lines of Canada, founded in 1929, carries more than 5.5 million passengers annually, operating in all Canadian provinces from British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography to Ontario and the two territories. For the third quarter, Greyhound's revenues totaled $71.9 million (Canada), up 7.1 percent from last year's $67.2 million for the same period. Income from continuing operations was $8.9 million for the third quarter, up from $8.4 million for the same period in 1993. CONTACT: The Dial Corp, Phoenix William Peltier, 602/207-5812 |
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