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FedEx just warned that the whole globe is slowing

CNBC logo CNBC 3/20/2019 Kate Rooney

A top executive at FedEx is flagging serious concerns in the global economy.

The multinational package delivery service reported declining international revenue as a result of unfavorable exchange rates and the negative effects of trade battles.

"Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue," Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer, said in statement.

FedEx reported weaker-than-expected third-quarter earnings and revenue on Tuesday, and cut its full-year guidance. Shares fell more than 4 percent in after-hours trading. 

To compensate for lower revenue, Graf said FedEx began a voluntary employee buyout program and constrained hiring. It is also "limiting discretionary spending" and is reviewing additional actions. FedEx Express international was down due primarily to higher growth in lower-yielding services and lower weight per shipment, Graf said.

FedEx shares have dropped roughly 27 percent in the past year, lagging the XLI industrial ETF's 1 percent decline.

Related video: Here's why FedEx missed on its Q3 earnings

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