November 22, 2024

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

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

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

“I think so. But you know, these numbers, they don’t portend very well,” Subramaniam said in response to Kramer’s question whether the economy was “in a global recession.”

CEO Pessimism Came After FedEx Loss of revenue and profit estimates in the first quarter. The company also withdrew its guidance for the whole year.

FedEx shares fell 15% in extended trading Thursday.

“I am very disappointed with the results we just announced here, and the headline really is the overall situation we are facing,” Subramaniam said in an interview today.money mad. “

So said the CEO, who took over the position earlier this year Twice the volume of global shipments Disappointing FedEx results drove. He said that while the company expected demand to increase after factories were closed in China due to Covid reopening, it had actually declined.

What is a recession, and can you expect it to happen?

Week after week, it happened,” Subramaniam said.

The CEO also said the volume loss is widespread, and that the company has seen a weekly decline since around Investor Day in June.

“We’re seeing volume declines in every sector around the world, so we’ve just started the second quarter,” he said. “The weekly numbers don’t look good, so we’re assuming at this point the economic conditions aren’t really good.”

He later added, “We are a reflection of everyone else’s business, especially the world’s high-value economy.”