Demand challenges hit General Mills and FedEx; Tesla skips employees’ yearly merit-based stock compensations

They’re not “cutting back” because they’re broke, I’ve seen boxes of cereal going for $7 bucks. The little boxes with Shrinkflation.

And the main buyers of cereal are still parents in desperate need of a quick meal for kids, and there are just plain a lot less parents, birthrates are low.

General Mills sales down 5% in North America as consumers cut back

Two big companies weighed in on persistent demand woes this week.

General Mills
, which reported earnings Wednesday morning, said tepid demand and pricing pressures are compounding problems for the Dunkaroos and Bisquick maker. That echoed what FedEx
said in its report after the bell Tuesday.

FedEx shares fell 12% on Wednesday, on pace for its worst day in 15 months, while General Mills’ stock slipped more than 3%.

And, just like FedEx, General Mills trimmed its full-year sales outlook. With two quarters remaining in the Cheerios producer’s fiscal year, the company now sees revenue down 1% to flat, compared with previous guidance of a 3% to 4% increase.

Fedex cuts its full year revenue forecast citing a weak holiday season

FedEx (FDX.N) cut its full-year revenue forecast and reported quarterly profit that fell far short of analysts’ targets on Tuesday, sending shares tumbling 9.8%, as its largest Express business saw demand from the U.S. Postal Service drop.

The global delivery firm’s shares fell to $252.58 in extended trading after closing at $280 on Tuesday. The results also dragged down shares of rival United Parcel Service (UPS.N) by 2.9%.

Tesla skips employees’ yearly merit-based stock compensations – Bloomberg News

Dec 19 (Reuters) – Tesla (TSLA.O) is not offering its employees yearly merit-based stock awards, Bloomberg News reported on Tuesday.

Tesla did not immediately respond to Reuters’ request for comment.

The news comes after United Auto Workers union said in November it is launching a first-of-its-kind push to publicly organize the entire nonunion auto sector in the U.S., including Tesla, after winning new contracts with the Detroit Three automakers.