In an interview with CNBC’s Jim Cramer on Thursday, FedEx CEO Raj Subramaniam says that he believes a global recession is looming for the world’s economy. The prediction comes after Subramaniam shared that FedEx did not reach its estimations for the first quarter performance. The company has also withdrawn its full-year guidance.
In response to Cramer asking if we will see “a worldwide recession” in the global economy soon, the FDX CEO says “I think so. But you know, these numbers, they don’t portend very well.”
He added that shares of FedEx fell 15% in extended trading 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 says on Cramer’s “Mad Money” show.
The new FedEx CEO feels that the company’s performance has a negative correlation to economic issues happening globally. He cites weakening global demand as the reason behind the Q1 2022 drop in earnings. “We are a reflection of everybody else’s business, especially the high-value economy in the world,” he later added.
“We’re seeing that volume decline in every segment around the world, and so you know, we’ve just started our second quarter,” Subramaniam said. “The weekly numbers are not looking so good, so we just assume at this point that the economic conditions are not really good.”