FedEx CEO Raj Subramaniam informed CNBC’s Jim Cramer on Thursday that he thinks an economic crisis is impending for the international economy.
“I think so. But you know, these numbers, they don’t portend very well,” Subramaniam stated in reaction to Cramer’s concern of whether the economy is “going into a worldwide recession.”
The CEO’s pessimism followed FedEx missed out on price quotes on earnings and incomes in its very first quarter. The business likewise withdrew its complete year assistance.
Shares of FedEx fell 15% in prolonged trading on Thursday.
“I’m very disappointed in the results that we just announced here, and you know, the headline really is the macro situation that we’re facing,” Subramaniam stated in an interview on “Mad Money.”
The president, who presumed the position previously this year, stated that deteriorating international delivery volumes drove FedEx’s frustrating outcomes. While the business expected need to increase after factories shuttered in China due to Covid opened back up, it in fact fell, he stated.
“Week over week over week, that came down,” Subramaniam stated.
The president likewise stated that the loss in volume is far-flung, which the business has actually seen weekly decreases given that around its financier day in June.
“We’re seeing that volume decline in every segment around the world, and so you know, we’ve just started our second quarter,” he stated. “The weekly numbers are not looking so good, so we just assume at this point that the economic conditions are not really good.”
“We are a reflection of everybody else’s business, especially the high-value economy in the world,” he later on included.
