In an interview with CNBC on Thursday Jim Cramer, fedex Chief Executive Raj Subramaniam said his company would perform well even as supply chains were reorganized.
“As supply chain models change, we are everywhere,” he said. “This is an advantage that people sometimes overlook. The fact that we have a scaled network gives us an advantage in this dynamic era.”.
President-elect Trump has threatened to significantly increase import tariffs from several countries, particularly China, moves that could disrupt global supply chains. While Subramaniam acknowledged that China currently accounts for about 28% to 30% of global manufacturing, he said the good news for FedEx was that its network spans the globe and claimed that the company serves 99% of global commerce.
This dynamic, he continued, makes it easier for FedEx to “adapt and shift our capacity” and connect any point in the network to the rest of the world. Subramaniam also said the company’s demand this month was better than expected. He said he thinks consumers are feeling more optimistic and suggested December could be a record month for the Port of Los Angeles.
FedEx reported mixed quarterly results after the close on Thursday declare The company plans to spin off its freight operations to another publicly traded company, FedEx Freight. Shares rose more than 8% in after-hours trading. Subramaniam said the demerger will help create long-term value for shareholders of both companies.
“We are gaining insights into global supply chains,” he said. “So we want to become not only a leading transportation network provider but also a global supply chain technology provider.”
