FedEx CEO Raj Subramaniam told CNBC’s Jim Cramer on Thursday that he believes a recession is coming for the global economy.
“I think so. But you know, these numbers, they don’t bode well,” Subramaniam said in response to Cramer’s question about the economy “going into a worldwide recession.”
The CEO’s pessimism came after FedEx missed estimates for revenue and earnings in the first quarter. The company also withdrew guidance for the full year.
Shares of FedEx fell 15% in extended trading Thursday.
“I’m very disappointed with the results that we just announced here, and you know, the headline is really the macro situation that we’re facing,” Subramaniam said in an interview on “Mad Money.”
The CEO, who took up the post earlier this year, said weakening global shipment volumes were driving FedEx’s disappointing results. While the company expected demand to pick up after factories closed in China due to Covid reopened, it actually fell, he said.
“Week over week over week, it came down,” Subramaniam said.
The CEO also said that the loss in volume is far-reaching, and that the company has seen weekly declines since around Investor Day in June.
“We’re seeing that volume decline in all segments around the world, and so you know, we’ve just started our second quarter,” he said. “The weekly numbers don’t look too good, so we’re just assuming at this point that economic conditions aren’t very good.”
“We are a reflection of everyone else’s business, especially the high-value economy of the world,” he added later.