FedEx CEO Says He Expects Economy To Enter ‘Global Recession’

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

“I think so. But you know, these numbers don’t bode well,” Subramaniam said in response to Cramer’s question as to whether the economy “is slipping into a global recession.”

The CEO’s pessimism came after FedEx failed to make estimates of revenue and profits in the first quarter. The company also withdrew its expectations for the full year.

Shares of FedEx fell 15% in extended trading on Thursday.

“I’m very disappointed with the results we just announced here, and you know, the headline is really the macro situation we’re facing,” Subramaniam said in an interview on “Mad Money.”

The CEO, who took up the position earlier this year, said declining global shipping volumes were behind FedEx’s disappointing results. While the company expected demand to increase after factories in China closed due to Covid, it actually fell, he said.

“Week after week after week, that came down,” Subramaniam said.

The chief executive also said the loss in volume is far-reaching and the company has seen weekly declines since around 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 said. “The weekly figures don’t look too good, so we’re just assuming the economic conditions aren’t really good at this point.”

“We are a reflection of everyone’s business, especially the high-quality economy in the world,” he added later.

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