(BFM Bourse) – The group has warned that its volumes had fallen at the end of the first quarter of its financial year which will end in May 2023. As a result, it will take a series of savings measures.
The American company Fedex transported fewer letters and packages than expected this summer and consequently withdrew its forecasts for the year on Thursday and initiated savings measures, plunging its stock market share.
At the start of the session on Wall Street, the action fell 22.1% to 159.63 dollars.
“The volumes (of parcels transported by Fedex) around the world declined as macroeconomic trends deteriorated considerably at the end of the group’s accounting quarter, running from June to August, said the chief executive, Raj Subramaniam, in a statement. communicated.
The group suffered particularly from economic conditions in Asia and operational difficulties in Europe, but also saw its activity slow down in the United States.
“We are trying to quickly manage these difficulties but given the speed at which conditions have changed, the results for the first quarter are below our expectations,” he added.
Hiring frozen
Fedex, which benefited greatly from the take-off of e-commerce at the start of the pandemic, nevertheless still expects to generate higher turnover than last year over the same period. It will reveal its final results on September 22.
Since the start of 2022, the company has managed to offset the drop in the volume of parcels transported by raising prices.
But it expects conditions to deteriorate further in the period from September to November, the second quarter of its fiscal year. Under these conditions, Fedex preferred to withdraw its profit forecasts for the year ending May 2023, provided in June.
Among the cost-saving measures taken, the group plans to reduce the frequency of its flights and some of its operations on Sundays, suspend new hires, close 90 stores and five office sites.
(With AFP)
JM – ©2022 BFM Bourse