FedEx Stock Falls 14% After Missed Earnings And Grim Outlook On Global Trade

  • 📰 Forbes
  • ⏱ Reading Time:
  • 58 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 53%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

The company took a hit from trade disputes and the loss of its Amazon business.

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

FedSex

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines