FedEx says “Macroeconomic trends significantly worsened” and has resorted to cost cutting measures including office closures.
This article was originally published by Mish Talk.
Cost Cutting Measures
Please note FedEx Moves to Cut Costs, Withdraws 2023 Guidance After Shipments Disappoint.
“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.,” CEO Raj Subramaniam said in the release. “While this performance is disappointing, we are aggressively accelerating cost reduction efforts.”
As part of these cost-cutting initiatives, FedEx will close 90 office locations, close five corporate office facilities, defer hiring efforts, reduce flights and cancel projects.
FedEx Performance
- Earnings per share: $3.44, adjusted vs. $5.14 expected
- Revenue: $23.2 billion vs. $23.59 billion expected
- Reduced its forecast for capital expenditure for the year by $500 million to $6.3 billion.
The result was a 13+% decline in the share price after hours. And it will close 90 offices, defer hiring, and cancel projects.
Not to worry, nearly everyone tells me the economy is great due to jobs.
GDPNow Forecast for Q3 Plunges to 0.5 Percent on Weak Consumer Spending
Earlier today I noted GDPNow Forecast for Q3 Plunges to 0.5 Percent on Weak Consumer Spending
I expect negative GDP for the third consecutive quarter. But hey, let’s not call that a recession.
