FedEx CEO says he expects the economy 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 international economy.

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

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The CEO’s pessimism got here after FedEx missed estimates on income and earnings in its first quarter. The firm additionally withdrew its full yr steerage.

Shares of FedEx fell 15% in prolonged buying and selling 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 mentioned in an interview on “Mad Money.”

The chief government, who assumed the place earlier this yr, mentioned that weakening international cargo volumes drove FedEx’s disappointing outcomes. While the firm anticipated demand to improve after factories shuttered in China due to Covid opened again up, it truly fell, he mentioned.

“Week over week over week, that came down,” Subramaniam mentioned.

The chief government additionally mentioned that the loss in quantity is wide-reaching, and that the firm has seen weekly declines since round its investor 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 mentioned. “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 added.

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