FedEx CEO Raj Subramaniam told CNBC’s Jim Cramer on Thursday that he believes a recession is brewing for the global economy.
Subramaniam said in response to Cramer’s question about whether the economy was “going into a worldwide recession”.
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The CEO’s pessimism comes after FedEx missed estimates of sales and earnings in its first quarter. The company also withdrew its full-year operating guidance.
Shares of FedEx fell 15% in extended trading on Thursday.
“I’m very disappointed with the results that we just published here, and you know, the headline is really the macro situation that we’re facing,” Subramaniam said in an interview on “Crazy money. “
The CEO, who took up the position earlier this year, said that weakening global shipping volumes fueled FedEx’s disappointing results. While the company expected demand to increase after factories in China closed due to Covid reopen, it actually fell, he said.
“Week after week, it’s tapered off,” says Subramaniam.
The CEO also said that the loss in volume was widespread and that the company has seen a weekly decline since around investor day in June.
“We are seeing numbers decline in every segment around the world and so you know, we just started our second quarter,” he said. “Weekly numbers don’t look very good, so we just assume that at the moment the economic conditions are not very good.”
“We are a reflection of people’s business, especially the world’s high-value economy,” he later added.
