FedEx CEO: ‘We’re Going into a Worldwide Recession’

FedEx CEO: 'We're Going into a Worldwide Recession
Facebook
Twitter
Telegram
Reddit
Email

FedEx CEO Raj Subramaniam has warned the economy is “going into a worldwide recession.”

During an interview with Jim Cramer of CNBC, Subramaniam elaborated on his company’s decision to pull guidance.

“I think so. But you know, these numbers, they don’t portend very well,” Subramaniam said.

FedEx’s top executive said declining worldwide cargo volumes were a driving factor behind the company’s unsatisfactory performance.

“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,” the FedEx CEO said.

The CEO said the drop in volumes was a reflection of the economy as a whole:

“We are a reflection of everybody else’s business, especially the high-value economy in the world,” he concluded.

Watch

On Thursday, FedEx announced it was withdrawing its fiscal year 2023 earnings forecast due to the preliminary 1Q financial performance.

FedEx Express results were hit by macroeconomic weakness in Asia and also challenges in Europe regarding service. This led to a $500 million revenue shortfall.

Specifically for Q1:

FedEx prelim 1Q adj EPS $3.44, est. $5.10

FedEx prelim 1Q Rev. $23.2B, est. $23.54B

FedEx prelim 1Q Adj. oper income $1.23B, est. $1.74B

The firm also added it was moving to cut costs:

The firm also added it was moving to cut costs:

“While this performance is disappointing, we are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable costs, and implement structural cost-reduction initiatives,” Subramaniam said.

These efforts are aligned with the strategy we outlined in June, and I remain confident in achieving our fiscal year 2025 financial targets.”

READ MORE:  MSNBC: MAGA 'Upset' Because Biden Called Out Their 'Fascism'

FedEx will close 90 office locations, defer hiring efforts, reduce flights, and close five corporate office facilities.

“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations,” Subramaniam said.

“While this performance is disappointing, we are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable costs, and implement structural cost-reduction initiatives,” he added.

“These efforts are aligned with the strategy we outlined in June, and I remain confident in achieving our fiscal year 2025 financial targets.”

Just like Joe Biden said, we’re not in a recession.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Breaking

Trending

CNN's Primetime Viewership Plummets to Just 444,000 as Don Lemon Hits Record Low
CNN's Primetime Viewership Plummets to Just 444,000 as Don Lemon Hits Record Low
CNN’s average primetime viewership took a nose dive to only 444,000 viewers during the week of...
Former NFL Player Jessie Lemonier, 25, Dies Suddenly
Former NFL Player Jessie Lemonier, 25, Dies Suddenly
Former NFL defensive end Jessie Lemonier has died aged 25 years old, the Lions announced Thursday. “We...
Matt Gaetz: "They Had to Accuse Trump of Colluding with Russia Because He Was the Only One Who Wasn't"
Matt Gaetz: "They Had to Accuse Trump of Colluding with Russia Because He Was the Only One Who Wasn't"
Matt Gaetz joined Steve Bannon on the War Room to discuss the Deep State’s reaction to the unfolding...
GREAT RESET: EU Gives Green Light for Two Insect Species to Be used for Human Consumption
GREAT RESET: EU Gives Green Light for Two Insect Species to Be used for Human Consumption
The European Union has given the green light for an additional two insect species to be used for human...
Lindsey Graham Laughs as Trump Says 'We Need a Leader to Stand Up to the RINOs' - WATCH
Lindsey Graham Laughs As Trump Says 'We Need a Leader to Stand Up to the RINOs' - WATCH
When Former President Donald Trump gave his moving speech in South Carolina on Saturday, one of his battle...
Paul Pelosi Attacker David DePape Makes Bizzare Call to TV Station: 'I've Got an Important Message...'
Paul Pelosi Attacker David DePape Makes Bizzare Call to TV Station: 'I've Got an Important Message...'
David DePape, the man who attacked Paul Pelosi in his home last year, made a bizarre call to a news station...
Lori Lightfoot Blasted for Blissfully DANCING in Streets of Chicago as Crime Soars 61%
Lori Lightfoot Blasted for Blissfully DANCING in Streets of Chicago as Crime Soars 61%
Chicago Mayor Lori Lightfoot was filmed dancing in the streets as violent crime continued to soar in...
Former California Democratic Mayor Pleads No Contest to Multiple Child Sex Crimes
Former California Democratic Mayor Pleads No Contest to Multiple Child Sex Crimes
Former Democratic mayor of a Northern California city, Robert Jacob, has pleaded no contest to six counts...
Whoopi Goldberg Tries To Spin Biden's Classified Docs Scandal, Fails Spectacularly - WATCH
Whoopi Goldberg Tries To Spin Biden's Classified Docs Scandal, Fails Spectacularly - WATCH
“The View” host Whoopi Goldberg tried to spin Joe Biden’s classified documents scandal...
Nancy Pelosi Caught Out Over Mysterious 'Timing' of Her MASSIVE Stock Trade, DOJ Lawsuit
Nancy Pelosi Caught Out Over Mysterious 'Timing' of Her MASSIVE Stock Trade, DOJ Lawsuit
In the closing days of Nancy Pelosi’s reign as House speaker and weeks before an antitrust lawsuit...
0
What are your thoughts? Click to commentx
()
x

JOIN THE FIGHT!

SIGN UP FOR OUR FREE BREAKING NEWSLETTER STRAIGHT TO YOUR INBOX! 

We don’t spam! Read our Privacy Policy for more info.