FedEx CEO says he expects the economy to enter a ‘worldwide recession’ - September 15, 2022

[sharon sanders]

FedEx CEO says he expects the economy to enter a ‘worldwide recession’


PUBLISHED THU, SEP 15 2022 6:38 PM EDT
UPDATED THU, SEP 15 2022 8:25 PM EDT
Krystal Hur@KRYSHUR

KEY POINTS

• FedEx CEO Raj Subramaniam told CNBC’s Jim Cramer on Thursday that he believes a recession is impending for the global economy.
• The CEO’s pessimism came after FedEx missed estimates on revenue and earnings in its first quarter. The company also withdrew its full year guidance.

FedEx CEO says he expects the economy to enter a ‘worldwide recession’

FedEx CEO Raj Subramaniam told CNBC’s Jim Cramer on Thursday that he believes a recession is impending for the global economy.

“I think so. But you know, these numbers, they don’t portend very well,” Subramaniam said in response to Cramer’s question of whether the economy is “going into a worldwide recession.”

The CEO’s pessimism came after FedEx missed estimates on revenue and earnings in its first quarter. The company also withdrew its full year guidance.

more....

https://www.cnbc.com/2022/09/15/fed...nt=Main&utm_source=Twitter#Echobox=1663281673

 

[Mary Wilson]

FedEx warns of a global recession, cutting sales forecast by half a billion dollars

Updated 2032 GMT (0432 HKT) September 16, 2022
By Chris Isidore

New York (CNN Business) - FedEx warned that a global recession could be coming, as demand for packages around the world tumbles.

Shares of FedEx (FDX) plunged 21% Friday — the biggest one-day drop in its history — after the company warned late Thursday that a slowing economy will cause it to fall $500 million short of its revenue target.
The weakening global economy, particularly in Asia and Europe, has hurt FedEx's express delivery business. The company said demand for packages weakened considerably in the final weeks of the quarter.

... He said FedEx is seeing a decline in the volume of freight it is handling in every region around the world. While he said US consumers are somewhat protected by the strength of the dollar, which is increasing their purchasing power, but he said FedEx is seeing a slowdown in Americans' spending as well.

... Shares of FedEx are now down 38% so far this year.
The company said it is responding by reducing flights and temporarily parking aircraft, trimming hours for its staff, delaying some hiring plans and closing 90 FedEx Office locations as well as five corporate offices. It is also cutting $500 million from its capital expenditure budget for its fiscal year, which runs through May of 2023, trimming that spending to $6.3 billion.

https://edition.cnn.com/2022/09/16/business/fedex-warning