FedEx Is Downbeat on Chinese Economy |
| Wall Street Journal - Sep 18, 2012 |
The head of FedEx Corp. FDX -2.67%on Tuesday sounded a warning about the fate of China's export-driven economy as the world's largest air package shipper cut its forecast for global growth in 2012 and 2013.
Fred Smith, the company's chief executive, said the economic weakness in Europe and the U.S. had slowed global trade, with product launches by tech-industry stalwarts such as Apple Inc. AAPL +0.01%and Microsoft Corp. MSFT -0.14%providing only a temporary lift.
Some China observers "completely underestimate" the impact of slowing exports despite the country's domestic stimulus efforts, Mr. Smith said during a conference call with analysts after the company reported a slip in fiscal first-quarter profit.
Mr. Smith's comments echo recent concerns expressed by other prominent executives. Andrew Liveris, chief executive of Dow Chemical Co., DOW -0.67%last week cautioned that destocking by Chinese clients was continuing, while small and medium-sized enterprises were suffering from a liquidity crunch. "They really are hurting, and bankruptcies are starting to occur," said Mr. Liveris at an investor event.
Read Full Article from Wall Street Journal
- Posted: 2012-09-18 14:42:19
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