Global Recession on its way reported by FedEx

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FedEx (FDX) shares fell 22% in early Friday trade after the company warned late Thursday that a sluggish economy would force it to fall $500 million below of its sales objective.

FedEx's express delivery business has suffered as the global economy has weakened, notably in Asia and Europe. According to the corporation, package demand slowed significantly.

FedEx anticipates business conditions to deteriorate further in the present second quarter, which goes through November.

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While worldwide revenue is forecast to remain steady this quarter compared to last, FedEx profitability are expected to fall more than 40%. Profit growth was predicted by analysts.

The CEO Raj Subramaniam stated that the global recession might be on its way when asked on Thursday by CNBC.

According to him, the volume of freight handled by FedEx is decreasing in every part of the world.

While he stated that the strength of the dollar protects US consumers by enhancing their purchasing power, but they have noticed a decline there as well to some extent.

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