Topline:
In a first quarter earnings report that missed expectations, FedEx said global trade will decline for the first time since 2009, a grim outlook which sent its stock plunging nearly 14% on Wednesday., the company downgraded its forecast for the year and noted that international trade has been substantially affected by the Trump administration’s tariffs.
Management blamed tariffs for slowing international shipping demand as well as highlighting the negative impact from FedEx halting its contract with Amazon“Global trade volumes will contract this year on an annual basis for the first time since 2009,” FedEx’s chief marketing and communications officer, Brie Carere, said on Tuesday. “A zero tariff, zero subsidy global trade environment is the most powerful economic growth engine there is,” she reiterated.
Chief Financial Officer Alan Graf added that “weakening global trade and industrial production have resulted in less than expected demand,” which hurt the shipping giant in the first quarter and caused the company to cut its 2020 earnings forecast.FedEx did not immediately respond to a request for comment.
FedSex
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: Reuters - 🏆 2. / 97 Read more »