"In the most recent situation, a shipment from Yemen moved on a commercial carrier, and when it got to Dubai and tried to enter our network, screening procedures were in place to not allow that to happen," Don Colleran, FedEx executive vice president of global sales, said at a Goldman Sachs conference.
The intercepted parcel was one of two air freight packages containing bombs sent from Yemen and addressed to synagogues in Chicago. The other was on a UPS cargo plane at that company's East Midlands airport in the UK.
"We have invested significantly in technology over the years to ensure that we have systems of screening that give us the best opportunity to keep any packages that can cause harm or damage out of the network," Colleran said in comments that were webcast.
The Memphis, Tennessee-based company also said it was "cautiously optimistic, and have been," about the holiday season.
Based on conversations with its customers, FedEx expects "our peak season to be a very healthy peak season," Colleran said. Low inventory at retails portends shipping growth if demand should exceed expectations.
The company said it would expand its business in India, as its FedEx Express unit will buy smaller Indian rival AFL Pvt Ltd and its Unifreight India Pvt Ltd affiliate for an undisclosed amount.
"The acquisition supports our long-term strategy to grow our international business and better serve our customers seeking to expand or enter the Indian market," FedEx Express Chief Operating Officer Michael Ducker said in a statement.
FedEx expects the deal to close in the third quarter ending in February. (Reuters)
