On July 23, the same day it released its first-half 2018 financial results, Groupe Michelin held an earnings call. One analyst asked about Michelin’s relationship with American Tire Distributors Inc. (ATD).
Here’s an abridged version of the conversation that transpired, which bodes well for ATD.
Gaetan Toulemonde, a financial analyst with Deutsche Bank AG’s Research Division.: “(ATD) lost two big (suppliers), Goodyear and Bridgestone. Would that make any sense for you to grow with them?”
Yves Chapot, president of Michelin (China) Investment Co. Ltd.: “Given, of course, we will grow -- and we intend to grow the business with our JV with Sumitomo Corp., TBC – (and) given the number of... retail point of sales in the U.S. market, there is no way that we can satisfy all these point of sales with only one wholesaler. So we need to maintain balance between different wholesalers. And actually, at the end of the day, it's the dealers who decide for whom they want to get their tires. So we'll continue to work with the winning wholesalers in the U.S. market.”
Toulemonde: “So, to summarize that, do you see that as an opportunity for you? Or you advise us to be very careful of (that) incremental volume?”
Chapot: “We're saying it can be seen as an opportunity, too, yes.”
Jean-Dominique Senard, CEO and Managing General Partner, Michelin: “Let's make it very positive, yes. It's an opportunity.”
Groupe Michelin’s net sales for the first half of the year were down compared to last year, while net income was up. For more information on the company’s most recent financial results, visit this link: