FedEx CEO says he expects the economic system to enter a ‘worldwide recession’
FedEx CEO Raj Subramaniam informed CNBC’s Jim Cramer on Thursday that he believes a recession is impending for the worldwide economic system.
“I feel so. However you realize, these numbers, they do not portend very properly,” Subramaniam stated in response to Cramer’s query of whether or not the economic system is “going right into a worldwide recession.”
The CEO’s pessimism got here after FedEx missed estimates on income and earnings in its first quarter. The corporate additionally withdrew its full yr steering.
Shares of FedEx fell 15% in prolonged buying and selling on Thursday.
“I am very dissatisfied within the outcomes that we simply introduced right here, and you realize, the headline actually is the macro state of affairs that we’re going through,” Subramaniam stated in an interview on “Mad Cash.”
The chief govt, who assumed the place earlier this yr, stated that weakening international cargo volumes drove FedEx’s disappointing outcomes. Whereas the corporate anticipated demand to extend after factories shuttered in China attributable to Covid opened again up, it truly fell, he stated.
“Week over week over week, that got here down,” Subramaniam stated.
The chief govt additionally stated that the loss in quantity is wide-reaching, and that the corporate has seen weekly declines since round its investor day in June.
“We’re seeing that quantity decline in each section all over the world and so you realize, we have simply began our second quarter,” he stated. “The weekly numbers aren’t wanting so good, so we simply assume at this level that the financial circumstances aren’t actually good.”
“We’re a mirrored image of all people else’s enterprise, particularly the high-value economic system on the planet,” he later added.