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US-China trade war flagged as major drag on FedEx's business


Added 09-18-19 12:04:01pm EST - “FedEx shares plunged after the parcel-delivery company slashed its full-year outlook.” - Foxbusiness.com

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Posted By TheNewsCommenter: From Foxbusiness.com: “US-China trade war flagged as major drag on FedEx's business”. Below is an excerpt from the article.

Hudson Institute Senior Fellow Michael Pillsbury explains how the Hong Kong protests could impact a trade deal between the U.S. and China.

The parcel-delivery service on Tuesday evening slashed its full-year 2020 profit forecast by up to 29 percent, sending shares plunging and on track for their biggest loss since Dec. 9, 2008. FedEx also cut its revenue forecast.

“Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty,” Chairman and CEO Frederick Smith said in the company’s first-quarter earnings release. In prepared statements on the company’s earnings call, executives mentioned “trade” a total of 17 times, an indication of their heightened concerns surrounding the topic.

FedEx is often viewed as a bellwether of the U.S. economy, meaning its outlook could be a sign that Corporate America is starting to feel the impact of the trade war.

Higher costs and the elimination of revenue from Amazon were also singled out as headwinds to business, but it was the trade war that was top of mind.

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