8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 3, 2006

RYDER SYSTEM, INC.

(Exact name of registrant as specified in its charter)

Florida	1-4364	59-0739250
(State or other jurisdiction of incorporation)	(Commission File Number)	Identification No.)
11690 NW 105th Street Miami, Florida		33178
(Address of Principal Executive Offices)		(Zip Code)

(305) 500-3726

(Registrant’s telephone number, including area code)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On February 3, 2006, we issued a press release reporting our financial results for the three and twelve months ended December 31, 2005 and our 2006 Forecast (the “Press Release”). We also hosted a conference call and webcast on February 3, 2006 during which we made a presentation on our financial results for the three and twelve months ended December 31, 2005 and our 2006 Forecast (the “Presentation”). The Press Release and the Presentation are available on our website at www.ryder.com.

The Press Release and the Presentation include information regarding our (i) comparable earnings and comparable earnings per share from continuing operations excluding the gain from our headquarters complex sale and net tax benefits and (ii) earnings before restructuring and income taxes, each of which is a non-GAAP financial measure as defined by SEC regulations. We believe that comparable earnings and comparable earnings per share from continuing operations provide useful information to investors because they exclude significant items that are unrelated to our ongoing business operations. We present earnings before restructuring and income taxes because we use this measure to evaluate the performance of our business segments and for informational purposes as such measure is often requested by our investors.

The information in this Report, including Exhibits 99.1 and 99.2, is being furnished pursuant to Item 2.02 of Form 8-K and General Instruction B.2 thereunder and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference to such filing .

Item 9.01(c) Exhibits

     The following exhibits are furnished as part of this Report on Form 8-K:

Exhibit 99.1	Press Release, dated February 3, 2006, relating to Ryder System, Inc.’s financial results for the three and twelve months ended December 31, 2005 and its 2006 Forecast.
Exhibit 99.2	Presentation prepared for a conference call and webcast held on February 3, 2006, relating to Ryder System, Inc.’s financial results for the three and twelve months ended December 31, 2005 and its 2006 Forecast.

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 3, 2006	RYDER SYSTEM, INC. (Registrant)
	By:	/s/ Tracy A. Leinbach
		Tracy A. Leinbach, Executive Vice
		President and Chief Financial Officer

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EX-99.1

Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE

Contacts:	Media:	Investor Relations:
	David Bruce	Bob Brunn
	(305) 500-4999	(305) 500-4053

RYDER REPORTS FOURTH QUARTER AND
FULL-YEAR 2005 RESULTS
AND 2006 FORECAST

- Fourth Quarter EPS from Continuing Operations $0.93, Up 13% from Comparable EPS of $0.82 in
the Same Period Last Year -
- - Fourth Quarter Revenue of $1.54 billion, Rises 13% Over Year-Earlier Period -
- - 2006 EPS Forecasted to Increase 10% to 14% Over Comparable 2005 Level -

     MIAMI, February 3, 2006 – Ryder System, Inc. (NYSE:R), a global leader in transportation and supply chain management solutions, today reported earnings per diluted share (EPS) from continuing operations were $0.93 for the three-month period ended December 31, 2005, up 13% from $0.82 of comparable EPS in the year-earlier period. Earnings from continuing operations were $59.5 million for the fourth quarter of 2005, up 11% from $53.4 million of comparable earnings in the year-earlier period. All business segments reported improved results. For comparison purposes, earnings from continuing operations and EPS for the prior year of 2004 exclude a net tax benefit of $9.2 million, or $0.14 per share, related to the resolution of various tax matters.

     Net earnings for the fourth quarter of 2005 were $58.8 million, or $0.92 per share, compared with $62.6 million, or $0.96 per share, in the year-earlier period. Net earnings for the fourth quarter of 2005 included a benefit of $1.7 million, or $0.03 per share, for the reduction of insurance reserves related to discontinued operations and a charge of $2.4 million, or $0.04 per share, for the cumulative effect of a change in accounting associated with the adoption of FIN 47 related to the future removal of underground fuel storage tanks.

     Revenue for the fourth quarter of 2005 was $1.54 billion, up 13% from $1.36 billion in the comparable period last year with all business segments reporting revenue growth. Fleet Management Solutions (FMS) business segment revenue grew 7%, driven by higher fuel services revenue. Supply Chain Solutions (SCS) business segment revenue grew 31%, driven by

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increased volume of managed subcontracted transportation as well as new and expanded business in all industry groups. Dedicated Contract Carriage (DCC) business segment revenue increased 11%, primarily due to new and expanded business, and pricing increases associated with higher fuel costs.

     “Our continued focus in the fourth quarter enabled us to deliver our second consecutive quarter of higher earnings and organic operating revenue growth in every segment,” said Ryder Chairman and Chief Executive Officer Greg Swienton. “Prior to the third quarter, we had not experienced a quarter of both earnings and revenue growth for all business segments simultaneously in several years. This consistent performance provides momentum for achieving our business objectives for 2006.”

     EPS from continuing operations for the fourth quarter of 2005 included restructuring costs of $0.04 related primarily to severance and the termination of an information technology contract related to global cost-savings initiatives. EPS from continuing operations in the year-earlier period included restructuring costs of $0.03 related primarily to the termination of an information technology infrastructure contract.

Full-Year 2005 Results

     Revenue for the full-year 2005 was $5.74 billion, up 11% from $5.15 billion in the comparable period of 2004. Ryder’s full-year 2005 earnings from continuing operations were $227.6 million compared with $215.6 million in the year-earlier period. EPS from continuing operations were $3.53 for 2005, up 8% compared with $3.28 for the same period of 2004. EPS from continuing operations in 2005 included a $0.12 income tax benefit related to a change in Ohio income tax law, as well as $0.03 in net restructuring costs. EPS from continuing operations in the year-earlier period of 2004 included a net tax benefit of $0.14 associated with the resolution of various tax matters, $0.23 of gains from the sale of the Company’s corporate headquarters complex and $0.06 in costs related to restructuring activities. For comparison purposes, excluding the noted net tax benefits in 2005 and 2004 and gains from the sale of the corporate headquarters complex in the year-earlier period of 2004, full-year 2005 earnings from continuing operations were $220.0 million, up 15% from $191.0 million in 2004. Comparable full-year 2005 EPS from continuing operations of $3.41 were up 17% from $2.91 in 2004. Ryder’s full-year 2005 net earnings also included an after-tax benefit of $1.7 million ($0.03 per

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diluted share) related to discontinued operations and an after-tax charge of $2.4 million ($0.04 per diluted share) for the cumulative effect of a change in accounting related to the adoption of FIN 47.

Fourth Quarter Business Segment Operating Results

     Ryder’s primary measurement of business segment financial performance, Net Before Tax (NBT), allocates Central Support Services to each business segment.

Fleet Management Solutions

     Ryder’s Fleet Management Solutions (FMS) business segment combines several capabilities into a comprehensive package that provides one-stop outsourcing of the acquisition, maintenance, management and disposal of vehicles. Ryder’s commercial rental service offers customers a method to expand their fleets in order to address specific or short-term capacity needs.

     In the FMS business segment, revenue in the fourth quarter of 2005 was $1.02 billion, up 7% compared with $950.5 million in the year-earlier period. Operating revenue (revenue excluding fuel) in the fourth quarter of 2005 was $723.6 million, up 1% compared with $719.3 million in the year-earlier period. Fuel services revenue for the fourth quarter of 2005 increased 27% compared with the same period in 2004, due primarily to higher fuel pricing as a result of market cost increases. Revenue comparisons also benefited from favorable foreign currency exchange rates. Full service lease revenue for the fourth quarter of 2005 was up 1% from the year-earlier period due to growth in the U.S. business. Commercial rental revenue was essentially flat compared with the year-earlier period, reflecting higher pricing offset by a smaller fleet. Contract maintenance and contract-related maintenance revenue increased 1% in the fourth quarter of 2005 compared with the same period last year.

     The FMS business segment’s NBT increased to $92.0 million in the fourth quarter of 2005, up 3% compared with $89.5 million in the same period of 2004. This improvement was related primarily to improved U.S. commercial rental and lease results and lower overhead costs, partially offset by lower margins in the Company’s U.K. operations. Earnings in the quarter were negatively affected by lower fuel margins resulting from the marked decrease in fuel prices (after the unprecedented increases that followed Hurricanes Katrina and Rita) and lower U.S.

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used vehicle sales gains resulting from actions taken during the quarter to reduce used truck inventories. Neither of these impacts is expected to continue. Business segment NBT as a percentage of operating revenue was 12.7% in the fourth quarter of 2005, up 30 basis points compared with 12.4% in the same quarter a year ago.

Supply Chain Solutions

     Ryder’s Supply Chain Solutions (SCS) business segment enables customers to improve shareholder value and their customers’ satisfaction by enhancing supply chain performance and reducing costs. The solutions involve management of the logistics pipeline as a synchronized, integrated process – from raw material supply to finished goods distribution. By improving business processes and employing new technologies, the flow of goods and cash is made faster and consumes less capital.

     In the SCS business segment, fourth quarter 2005 revenue totaled $482.7 million, up 31% from $367.4 million in the comparable period of 2004. Revenue grew due to increased volume of managed subcontracted transportation, as well as new and expanded business in all industry groups. Operating revenue (revenue excluding subcontracted transportation) was $274.2 million, up 12% from $245.9 million in the comparable period a year ago.

     The SCS business segment’s NBT was $14.0 million in the fourth quarter of 2005, up 22% from $11.4 million in the same quarter of 2004. The earnings increase was related to new and expanded business and lower overhead spending. Business segment NBT as a percentage of operating revenue was 5.1% in the fourth quarter of 2005, up 50 basis points compared with 4.6% in the same quarter of 2004.

Dedicated Contract Carriage

     Ryder’s Dedicated Contract Carriage (DCC) business segment provides customers with vehicles, drivers, management and administrative support, with the assets committed to a specific customer for a contractual term. DCC supports customers with both basic and sophisticated logistics and transportation needs including routing and scheduling, specialized driver services, and logistical engineering support.

     In the DCC business segment, fourth quarter 2005 revenue totaled $142.5 million, up 11% compared with $128.5 million in the fourth quarter of 2004. Operating revenue (revenue

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excluding subcontracted transportation) in the fourth quarter of 2005 was $137.8 million, up 10% compared with $125.5 million in the year-earlier period. Revenue grew due to new and expanded business and pricing increases associated with higher fuel costs.

     The DCC business segment’s NBT in the fourth quarter of 2005 was $10.4 million, up 52% compared with $6.8 million in the fourth quarter of 2004. Business segment NBT was positively impacted by new and expanded business, as well as lower safety costs. Business segment NBT as a percentage of operating revenue was 7.5% in the fourth quarter of 2005, up 200 basis points compared with 5.5% in the year-earlier period.

Corporate Financial Information

Central Support Services

     Central Support Services (CSS) are overhead costs incurred to support all business segments and product lines. The majority of CSS costs are allocated to the various business segments.

     In the fourth quarter of 2005, CSS costs were $53.4 million, down from $56.4 million in the year-earlier period. The decrease was due primarily to cost benefits realized from the insourcing and renegotiation of several information technology infrastructure services agreements. Full-year CSS costs were $207.3 million, down from $212.4 million in 2004.

Capital Expenditures

     In Ryder’s business, capital expenditures are generally used to purchase revenue-earning equipment (trucks, tractors and trailers) primarily to support the full service lease product line and secondarily to support the commercial rental product line within Ryder’s Fleet Management Solutions business segment. The level of capital required to support the full service lease product line varies directly with customer contract signings for replacement vehicles and growth. These contracts are long-term agreements that result in predictable cash flows to Ryder typically over a three- to seven-year term. The commercial rental product line utilizes capital for the purchase of vehicles to replenish and expand the Company’s fleet available for shorter-term use by contractual or occasional customers.

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     Capital expenditures excluding acquisition costs were $1.41 billion for the full-year 2005, compared with $1.17 billion in 2004. Net capital expenditures (including proceeds from the sale of assets) were $1.08 billion, up from $833.1 million in 2004. The increase in capital expenditures reflects higher vehicle replacements primarily related to customer contract extensions and renewals in the lease product line. Heightened lease extension and renewal activity in 2005 helped to lengthen the average remaining term among Ryder’s lease customers, thereby improving the overall value of the Company’s portfolio of contractual business.

Leverage and Free Cash Flow

     Free cash flow for 2005 was a negative $209.8 million compared with $146.7 million for 2004, primarily due to the funding requirements associated with higher capital spending and income tax payments, which included a $176.0 million payment related to the previously disclosed resolution of the 1998 to 2000 federal tax audit. Balance sheet debt as of December 31, 2005 increased by $402.2 million compared with year-end 2004, due to negative free cash flow, and stock repurchases including the buy back of $109 million of the Company’s common stock under the recently announced $175 million share repurchase plan. The leverage ratio for balance sheet debt as of December 31, 2005 was 143% compared with 118% at year-end 2004. Total obligations to equity as of December 31, 2005 were 151%, up from 129% at year-end 2004. The Company’s long-term target range for total obligations to equity is 250% to 300%, which largely reflects the liquidity of the Company’s vehicle portfolio and the substantial revenue component that is supported by long-term customer contracts related to those assets.

2006 Forecast

     Ryder forecasts full-year 2006 earnings to be in the range of $3.75 to $3.90 per diluted share. This represents an EPS increase of 10% to 14% over Ryder’s comparable full-year 2005 EPS. Full-year 2006 EPS include an $0.08 benefit from the forecasted lower number of diluted shares outstanding, principally driven by the Company’s recently announced share repurchase plan; this was more than offset by $0.10 of incremental costs related to the expensing of stock-based compensation. The Company also established a first quarter 2006 EPS forecast of $0.65 to $0.70.

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     “We are forecasting Ryder’s 2006 revenue to grow by 3% to 4%, and operating revenue to grow by 4% to 5%,” said Ryder Chairman and Chief Executive Officer Greg Swienton. “Having completed another year of consistently better performance, including progress in revenue and earnings in every segment, Ryder is well-positioned to deliver on our business objectives for 2006.”

     To support the planned replacement of vehicles assigned to long-term lease customers, the Company anticipates 2006 capital expenditures to be approximately $1.6 billion; net capital expenditures (including proceeds from sale of assets) are expected to be approximately $1.2 billion. Free cash flow is expected to be in the range of negative $90 million to negative $170 million in 2006, due to funding requirements associated with higher capital spending.

     Commenting on the Company’s financial plan for 2006, Ryder Executive Vice President and Chief Financial Officer Tracy Leinbach said, “We will continue to utilize our balance sheet capacity to support our growth needs. Specifically, we plan investments in sales and operational capabilities as well as building a stronger Asia presence including China Operations to enhance our operating efficiency and enable growth. We continue to identify and target process improvements and cost initiatives in areas throughout the Company. Taken together, these actions should provide additional earnings leverage in 2006 and beyond.”

About Ryder

     Ryder provides leading-edge transportation, logistics and supply chain management solutions worldwide. Ryder’s product offerings range from full service leasing, commercial rental and programmed maintenance of vehicles to integrated services such as dedicated contract carriage and carrier management. Additionally, Ryder offers comprehensive supply chain solutions, consulting, lead logistics management services and e-Business solutions that support customers’ entire supply chains, from inbound raw materials and parts through distribution and delivery of finished goods. Ryder serves customer needs throughout North America, in Latin America, Europe and Asia.

     The National Safety Council selected Ryder to receive the 2002 Green Cross for Safety Medal – its highest honor – for exemplary commitment to workplace safety and corporate citizenship. For the ninth consecutive year, Ryder was featured in the 2005 Fortune Most Admired Companies survey of corporate reputations. InternetWeek named Ryder as one of the

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top 100 U.S. companies for effectiveness in using the Internet to achieve tangible business benefits. For the eighth consecutive year, Ryder has been named a top five third-party logistics provider by Inbound Logistics.

     Ryder’s stock is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. Ryder ranks 381^st on the Fortune 500.

     For more information on Ryder System, Inc., visit www.ryder.com.

# # #

Note Regarding Forward-Looking Statements: Certain statements and information included in this presentation, including all of the 2006 forecast information, are “forward-looking statements” under the Federal Private Securities Litigation Reform Act of 1995. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Important factors that could cause such differences include, among others, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to customer acceptance or competition, customer retention levels, unexpected volume declines, loss of key customers in the Supply Chain Solutions (SCS) business segment, unexpected reserves or write-offs due to the deterioration of the credit worthiness or bankruptcy of certain customers in our SCS business segment, changes in financial, tax or regulatory requirements or changes in customers’ business environments that limit their ability to commit to long-term vehicle leases, changes in market conditions affecting the commercial rental market or the sale of used vehicles, labor strikes or work stoppages affecting our or our customers’ business operations, adequacy of accounting estimates and accruals, changes in general economic conditions, sudden changes in fuel prices, availability of qualified drivers, our ability to manage our cost structure, changes in government regulations, including regulations regarding vehicle emissions and risks described in our filings with the Securities and Exchange Commission. The risks included here are not exhaustive. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Note Regarding Non-GAAP Financial Measures: This news release and the attached financial schedules include certain non-GAAP financial measures as defined under SEC rules. We have denoted each non-GAAP financial measure in the attached financial schedules and have provided a reconciliation of each such measure to the most comparable GAAP measure. Additional information regarding non-GAAP financial measures can be found in our investor presentation for the quarter and in our reports filed with the SEC, which are available in the investors area of our website at www.ryder.com.

Conference Call and Webcast Information:
Ryder’s earnings conference call and webcast is scheduled for Friday, February 3, 2006, from 11:00 a.m. to 12:00 noon Eastern Time. Speakers will be Chairman and Chief Executive Officer Greg Swienton and Executive Vice President and Chief Financial Officer Tracy Leinbach.

Þ	To join the conference call live:Begin 10 minutes prior to the conference by dialing the audio phone number 1-888-398-5319 (outside U.S. dial 1-773-681-5795) using the Passcode: RYDER and Conference Leader: Bob Brunn. Then, access the presentation via the Net Conference website at www.mymeetings.com/nc/join/ using the Conference Number: RH5989588 and Passcode: RYDER.
Þ	To access audio replays of the conference and view a presentation of Ryder’s earnings results: Dial 1-866-510-4827 (outside U.S. dial 1-203-369-1936) and use the Passcode: 2226, then view the presentation by visiting the Investors area of Ryder’s website at www.ryder.com.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS — UNAUDITED
Periods ended December 31, 2005 and 2004
(In millions, except per share amounts)

	Three Months						Twelve Months
	2005			2004			2005			2004
Revenue	$	1,544.8			1,363.2		$	5,740.8			5,150.3
Operating expense		669.9			615.4			2,572.1			2,305.4
Salaries and employee-related costs		333.6			315.6			1,262.2			1,233.0
Subcontracted transportation		213.2			124.5			638.3			425.0
Depreciation expense		184.1			177.2			740.4			706.0
Gains on vehicle sales, net		(9.0	)		(8.8	)		(47.1	)		(34.5	)
Equipment rental		25.5			28.3			102.8			108.5
Interest expense		31.3			24.7			120.5			100.1
Miscellaneous income, net		(1.6	)		(2.3	)		(8.9	)		(6.6	)
Restructuring and other charges (recoveries), net		4.0			2.8			3.4			(17.7	)
		1,451.0			1,277.4			5,383.7			4,819.2
Earnings from continuing operations before income taxes		93.8			85.8			357.1			331.1
Provision for income taxes		(34.3	)		(23.2	)		(129.5	)		(115.5	)
Earnings from continuing operations		59.5			62.6			227.6			215.6
Discontinued operations, net of tax		1.7			—			1.7			—
Cumulative effect of change in accounting principle, net of tax		(2.4	)		—			(2.4	)		—
Net earnings	$	58.8			62.6		$	226.9			215.6
Earnings per common share — Diluted:
Continuing operations	$	0.93			0.96		$	3.53			3.28
Discontinued operations		0.03			—			0.03			—
Cumulative effect of change in accounting principle		(0.04	)		—			(0.04	)		—
Net earnings	$	0.92			0.96		$	3.52			3.28
Weighted-average shares outstanding — Diluted		63.9			65.5			64.6			65.7
Memo: EPS Impact of restructuring and other (charges) recoveries, net	$	(0.04	)		(0.03	)	$	(0.03	)		0.17

Note: Certain prior period amounts have been reclassified to conform to current year presentation.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS — UNAUDITED
PRELIMINARY AND SUBJECT TO RECLASSIFICATION
(Dollars in millions)

	December 31,		December 31,
	2005		2004
Assets:
Cash and cash equivalents	$	128.7		101.0
Other current assets		1,035.1		951.0
Revenue earning equipment, net		3,794.4		3,506.6
Operating property and equipment, net		486.8		480.4
Other assets		588.3		598.9
	$	6,033.3		5,637.9
Liabilities and shareholders’ equity:
Short-term debt / Current portion of long-term debt	$	269.4		389.5
Other current liabilities		984.0		1,065.3
Long-term debt		1,916.0		1,393.7
Other non-current liabilities (including deferred income taxes)		1,336.4		1,279.2
Shareholders’ equity		1,527.5		1,510.2
	$	6,033.3		5,637.9

SELECTED KEY RATIOS

	December 31,			December 31,
	2005			2004
Debt to equity		143	%		118	%
Total obligations to equity (a) *		151	%		129	%

	Twelve months ended December 31,
	2005			2004
Return on average shareholders’ equity (b)		14.6	%		15.3	%
Return on average assets (b)		3.9	%		3.9	%
Average asset turnover		97.6	%		94.3	%
Return on capital*		7.8	%		7.7	%

(a)	Total obligations represent debt plus off-balance sheet equipment obligations.
(b)	Includes discontinued operations and the effect of accounting changes.
*	Non-GAAP financial measure; see reconciliation to closest GAAP financial measure included within this release.

Note: Certain prior period amounts have been reclassified to conform to current year presentation.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT REVENUE AND EARNINGS — UNAUDITED
Periods ended December 31, 2005 and 2004
(Dollars in millions)

	Three Months									Twelve Months
	2005			2004			B(W)			2005			2004			B(W)
Revenue:
Fleet Management Solutions:
Full service lease	$	451.1		$	447.6			0.8	%	$	1,785.6		$	1,766.7			1.1	%
Contract maintenance		32.6			33.7			(3.3	%)		134.5			136.3			(1.3	%)
Contract-related maintenance		48.4			46.5			4.0	%		194.7			178.1			9.3	%
Commercial rental		175.3			174.8			0.3	%		686.3			649.8			5.6	%
Other		16.2			16.7			(2.5	%)		63.8			69.7			(8.5	%)
Fuel		292.5			231.2			26.5	%		1,056.3			802.2			31.7	%
Total Fleet Management Solutions		1,016.1			950.5			6.9	%		3,921.2			3,602.8			8.8	%
Supply Chain Solutions		482.7			367.4			31.4	%		1,637.8			1,354.0			21.0	%
Dedicated Contract Carriage		142.5			128.5			10.9	%		543.3			506.2			7.3	%
Eliminations		(96.5	)		(83.2	)		(16.0	%)		(361.5	)		(312.7	)		(15.6	%)
Total revenue	$	1,544.8			1,363.2			13.3	%	$	5,740.8			5,150.3			11.5	%
Business segment earnings:
Earnings before income taxes:
Fleet Management Solutions	$	92.0			89.5			2.8	%	$	354.4			312.7			13.3	%
Supply Chain Solutions		14.0			11.4			22.3	%		39.4			37.1			6.2	%
Dedicated Contract Carriage		10.4			6.8			51.6	%		35.1			29.5			19.3	%
Eliminations		(9.5	)		(9.3	)		(0.6	%)		(32.7	)		(32.8	)		0.2	%
		106.9			98.4			8.6	%		396.2			346.5			14.3	%
Unallocated Central Support Services		(9.1	)		(9.8	)		7.4	%		(35.7	)		(33.1	)		(8.1	%)
Earnings from continuing operations before restructuring and other (charges) recoveries, net and income taxes		97.8			88.6			10.4	%		360.5			313.4			15.0	%
Restructuring and other (charges) recoveries, net		(4.0	)		(2.8	)		(42.5	%)		(3.4	)		17.7		NM
Earnings from continuing operations before income taxes		93.8			85.8			9.3	%		357.1			331.1			7.8	%
Provision for income taxes		(34.3	)		(23.2	)		(48.1	%)		(129.5	)		(115.5	)		(12.1	%)
Earnings from continuing operations		59.5			62.6			(5.0	%)		227.6			215.6			5.6	%
Discontinued operations, net of tax		1.7			—		NM				1.7			—		NM
Cumulative effect of change in accounting principle, net of tax		(2.4	)		—		NM				(2.4	)		—		NM
Net earnings	$	58.8			62.6			(6.1	%)	$	226.9			215.6			5.3	%

Note: Certain prior period amounts have been reclassified to conform to current year presentation.
Amounts may not recalculate due to rounding.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION — UNAUDITED
Periods ended December 31, 2005 and 2004
(Dollars in millions)

	Three Months									Twelve Months
	2005			2004			B(W)			2005			2004			B(W)
Fleet Management Solutions
Total revenue	$	1,016.1			950.5			6.9	%	$	3,921.2			3,602.8			8.8	%
Fuel revenue		(292.5	)		(231.2	)		26.5	%		(1,056.3	)		(802.2	)		31.7	%
Operating revenue *	$	723.6			719.3			0.6	%	$	2,864.9			2,800.6			2.3	%
Segment earnings before income taxes	$	92.0			89.5			2.8	%	$	354.4			312.7			13.3	%
Earnings before income taxes as % of total revenue		9.1	%		9.4	%					9.0	%		8.7	%
Earnings before income taxes as % of operating revenue *		12.7	%		12.4	%					12.4	%		11.2	%
Supply Chain Solutions
Total revenue	$	482.7			367.4			31.4	%	$	1,637.8			1,354.0			21.0	%
Subcontracted transportation		(208.5	)		(121.5	)		71.6	%		(622.0	)		(415.3	)		49.8	%
Operating revenue *	$	274.2			245.9			11.5	%	$	1,015.8			938.7			8.2	%
Segment earnings before income taxes	$	14.0			11.4			22.3	%	$	39.4			37.1			6.2	%
Earnings before income taxes as % of total revenue		2.9	%		3.1	%					2.4	%		2.7	%
Earnings before income taxes as % of operating revenue *		5.1	%		4.6	%					3.9	%		4.0	%
Memo: Fuel costs	$	25.5			19.2			(32.6	%)	$	92.0			65.7			(40.0	%)
Dedicated Contract Carriage
Total revenue	$	142.5			128.5			10.9	%	$	543.3			506.2			7.3	%
Subcontracted transportation		(4.7	)		(3.0	)		56.7	%		(16.3	)		(9.7	)		68.7	%
Operating revenue *	$	137.8			125.5			9.8	%	$	527.0			496.5			6.1	%
Segment earnings before income taxes	$	10.4			6.8			51.6	%	$	35.1			29.5			19.3	%
Earnings before income taxes as % of total revenue		7.3	%		5.3	%					6.5	%		5.8	%
Earnings before income taxes as % of operating revenue *		7.5	%		5.5	%					6.7	%		5.9	%
Memo: Fuel costs	$	26.4			20.2			(30.4	%)	$	94.1			72.5			(29.7	%)

* Non-GAAP financial measure

Note: Certain prior period amounts have been reclassified to conform to current year presentation.
Amounts may not recalculate due to rounding.

12

RYDER SYSTEM, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS — PRELIMINARY AND UNAUDITED
Periods ended December 31, 2005 and 2004
(In millions, except per share amounts)

FREE CASH FLOW RECONCILIATION

	Twelve Months
	2005			2004
Net cash provided by operating activities	$	779.1			866.8
Net cash used in investing activities		(988.9	)		(720.1	)
Free cash flow *	$	(209.8	)		146.7

DEBT TO EQUITY RECONCILIATION

	December 31,					December 31,
	2005		% to Equity			2004		% to Equity
On-balance sheet debt	$	2,185.4		143	%	$	1,783.2		118	%
Off-balance sheet debt — PV of minimum lease payments and guaranteed residual values under operating leases for vehicles (a)		117.0					161.1
Total obligations *	$	2,302.4		151	%	$	1,944.3		129	%

NET EARNINGS

	Three Months				Twelve Months
	2005		2004		2005		2004
Earnings from continuing operations	$	59.5	$	62.6	$	227.6	$	215.6
Less: Net tax benefits		—		9.2		7.6		9.2
Gain on sale of headquarters complex, net of tax		—		—		—		15.4
Earnings from continuing operations excluding net tax benefits and gain on sale of headquarters complex*	$	59.5	$	53.4	$	220.0	$	191.0

EPS RECONCILIATION

	Three Months				Twelve Months
	2005		2004		2005		2004
Earnings from continuing operations	$	0.93		0.96	$	3.53		3.28
Less: Net tax benefits		—		0.14		0.12		0.14
Gain on sale of headquarters complex, net of tax		—		—		—		0.23
Earnings from continuing operations excluding net tax benefits and gain on sale of headquarters complex*	$	0.93	$	0.82	$	3.41	$	2.91

RETURN ON CAPITAL RECONCILIATION

	Twelve months ended December 31,
	2005			2004
Net earnings [1]	$	226.9		$	215.6
Discontinued operations, net of tax		(1.7	)		—
Cumulative effect of change in accounting principle, net of tax		2.4			—
Earnings from continuing operations		227.6			215.6
Restructuring — Gain on sale of headquarters complex		—			(24.3	)
Provision for income taxes		129.5			115.5
Earnings before net restructuring and income taxes		357.1			306.8
Interest expense		120.5			100.1
Implied interest expense from off-balance sheet debt		6.6			6.0
Adjusted earnings before income taxes		484.2			412.9
Adjusted income taxes		(185.9	)		(155.5	)
Adjusted earnings from continuing operations (Non-GAAP) [2]	$	298.3		$	257.4
Average total debt	$	2,147.8		$	1,811.5
Average shareholders’ equity		1,554.7			1,412.0
Total capital (GAAP) [3]		3,702.6			3,223.5
Adjustments to capital (b)		(4.7	)		(16.4	)
Average off-balance sheet debt		147.9			151.8
Adjusted total capital (Non-GAAP) [4]	$	3,845.7		$	3,358.9
Return on capital (GAAP) [1] / [3]		6.13	%		6.69	%
Return on capital (Non-GAAP) [2] / [4]		7.76	%		7.66	%

(a)	Discounted at the incremental borrowing rate at lease inception.
(b)	Amounts represent adjustments made to equity to conform to the adjustments to the earnings calculation.
*	Non-GAAP financial measure
Note:	Earnings per share amounts are calculated independently for each component and may not be additive due to rounding. Certain prior period amounts have been reclassified to conform to current year presentation.

13

EX-99.2

Fourth Quarter 2005 Earnings & 2006 Forecast Conference Call February 3, 2006

Safe Harbor Certain statements and information included in this presentation, including all of the 2006 forecast information, are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Important factors that could cause such differences include, among others, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to customer acceptance or competition, customer retention levels, unexpected volume declines, loss of key customers in the Supply Chain Solutions (SCS) business segment, unexpected reserves or write-offs due to the deterioration of the credit worthiness or bankruptcy of certain customers in our SCS business segment, changes in financial, tax or regulatory requirements or changes in customers' business environments that will limit their ability to commit to long-term vehicle leases, changes in market conditions affecting the commercial rental market or the sale of used vehicles, labor strikes or work stoppages affecting our or our customers' business operations, adequacy of accounting estimates and accruals, changes in general economic conditions, sudden changes in fuel prices, availability of qualified drivers, our ability to manage our cost structure, changes in government regulations including regulations regarding vehicle emissions and the risks described in our filings with the Securities and Exchange Commission. The risks included here are not exhaustive. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contents Fourth Quarter 2005 Results 2006 Forecast Financial Objectives Q & A

4th Quarter Results Overview Reported net earnings per diluted share were $0.92 vs. $0.96 in 4Q04 4Q05 included $0.03 benefit from discontinued operations and $0.04 charge from cumulative effect of accounting change Earnings per diluted share from continuing operations were $0.93, up 13% from a comparable $0.82 in 4Q04 Comparable 4Q04 results exclude $0.14 net tax benefit associated with resolution of tax matters Comparable 4Q05 and 4Q04 results include restructuring costs of $0.04 and $0.03, respectively Fleet Management Solutions (FMS) total revenue up 7% and operating revenue up 1% vs. prior year Full service lease revenue increased 1%; U.S. lease revenue up 2% Commercial rental revenue flat; higher pricing offsetting lower fleet count FMS net before tax earnings (NBT) up 3% FMS NBT percent of operating revenue up 30 basis points to 12.7% FMS earnings positively impacted by improved U.S. rental and lease results and lower overheads, partially offset by lower margins in the U.K. business

4th Quarter Results Overview (cont'd) Supply Chain Solutions (SCS) total revenue up 31% (and operating revenue up 12%) vs. prior year, reflecting increased managed subcontracted transportation as well as new and expanded business SCS net before tax earnings (NBT) up 22% SCS NBT percent of operating revenue up 50 basis points to 5.1% SCS earnings positively impacted by new and expanded business as well as lower overhead spending Dedicated Contract Carriage (DCC) total revenue up 11% (and operating revenue up 10%) vs. prior year; increase due to new and expanded business as well as higher fuel costs passed through to customers DCC net before tax earnings (NBT) up 52% DCC NBT percent of operating revenue up 200 basis points to 7.5% DCC earnings positively impacted by revenue growth from new and expanded business as well as lower safety costs

Earnings Per Share Fourth Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable EPS from continuing operations excludes net tax benefit in 2004. (2) Calculated based on a 12-month rolling period.

Earnings Per Share Full Year (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable EPS from continuing operations excludes gain from headquarters complex sale in 2004 and net tax benefits in 2004 and 2005. (2) Calculated based on a 12-month rolling period

Business Segment Fourth Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable earnings from continuing operations excludes net tax benefit in 2004. (2) Allocation of Restructuring and Other Charges, Net across business segments was as follows: FMS - $(3.3), SCS - $(0.7) in 2005 and FMS - $(1.6), SCS - $(0.2) and DCC - $(1.0) in 2004 ($ Millions)

Business Segment (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable earnings from continuing operations excludes gain from headquarters complex sale in 2004 and net tax benefits in 2004 and 2005. (2) Allocation of Restructuring and Other Recoveries/(Charges), Net across business segments was as follows: FMS - $(2.7) and SCS - $(0.7) in 2005 and FMS - $(4.3), SCS - $(1.9), DCC - $(0.5) and CSS - $24.4 in 2004 Full Year ($ Millions)

Capital Expenditures Full Year ($ Millions)

Asset Management Update Note: U.S. only The overall number of vehicles sold in the fourth quarter was 5,614; up 32% compared with prior year Increased wholesale activity to dispose of older vehicles Used tractor retail sales proceeds up 8% per unit vs. prior year period; up 4% from third quarter 2005 Used truck retail sales proceeds down 5% per unit vs. prior year period; up 2% from third quarter 2005 Vehicles not yet earning revenue are 1,692; down 245 from prior year Vehicles no longer earning (NLE) revenue are 6,934; up 556 or 9% over prior year driven by a larger used vehicle inventory NLE vehicles down 295 units or 4% vs. the third quarter 2005 4,742 of these units are held for sale at the used truck centers Commercial rental fleet down 1,900 units or 5% from prior year

Free Cash Flow (1) Includes non-cash restructuring and other recoveries, net (2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment (3) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures Full Year ($ Millions)

Debt to Equity Ratio Strong balance sheet to support profitable growth Note: Includes impact of accumulated net pension related equity charge of $221 million as of 12/31/05 and $189 million as of 12/31/04. (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Represents long term total obligations to equity target while maintaining a strong investment grade rating. (1) (2) ($ Millions)

Contents Fourth Quarter 2005 Results 2006 Forecast Financial Objectives Q & A

Key Assumptions / Drivers We anticipate moderate economic growth conditions during 2006 Diesel price per gallon assumed to decrease 10%; will impact gross revenue growth rate Fleet Management Solutions Improvement in lease/maintenance customer retention and new sales levels due to continuing initiatives As expected, continued heavy lease fleet replacement cycle Stable rental demand with growth in rental transactions; increasing returns due to asset management initiatives Flat rental fleet while continuing to increase pricing and utilization levels Continued strong gains on sale of vehicles due to higher volume of used vehicle sales; stable used vehicle pricing Continued execution of cost containment and process improvement initiatives

Key Assumptions / Drivers Supply Chain Solutions and Dedicated Contract Carriage Conversion of strong sales pipeline and strong level of customer retention Continue diversification of customer base Management of automotive volume impacts Expand capabilities and volume of transportation management Continue focus on overhead reductions and cost containment Selective investments to support future growth such as building stronger Asian presence including China operations Ryder System's earnings improvement stems primarily from leverage on revenue growth with continuing contribution through cost reductions

Key Financial Statistics (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable earnings and comparable EPS exclude net tax benefit in 2005. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of steady market fuel prices. Subcontracted Transportation revenue is excluded from the operating revenue computation as it is largely a pass through to customers and the Company realizes minimal changes in profitability as a result of fluctuations in Subcontracted Transportation. Note: Earnings per share amount are calculated independently for each component and may not be additive due to rounding. ($ Millions, Except Per Share Amounts)

2006 Causes of EPS Change (1) Excludes $0.12 benefit from Ohio tax change (2) Includes net impact of share repurchase plan ($ Earnings Per Share) $0.32 - 0.47 or 9 - 14% Improvement (2)

Business Segment Revenue

Business Segment Earnings Full Year ($ Millions) (1) Operating revenue excludes fuel services revenue in Fleet Management Solutions and Subcontracted Transportation in Supply Chain Solutions and Dedicated Contract Carriage.

EPS Forecast (1) Non-GAAP financial measure. Excludes net tax benefit in 2005. ($ Earnings Per Share) Note: 2006 EPS Forecast includes $0.10 impact of stock option expense starting 1/1/06.

Capital Expenditures, Free Cash Flow & Leverage Full Year ($ Millions) (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.

Capital Expenditures Full Service Lease: Capital for lease vehicles is only committed after contracts are signed with customers 2006 lease capital expenditures include: Replacement spending of $1.1 billion Growth spending of $120 - $205 million Growth capital represents an investment which results in $20 - $35 million of incremental 2006 revenue or $40 - $75 million of annualized revenue 2007 lease replacement capital projected to decline due to a 30% decrease in lease contracts scheduled to expire Commercial Rental: 2006 rental capital expenditures include: Replacement spending of $220 million

Summary Focus on strong customer retention and new business development Accelerate growth in full service lease and contract maintenance product lines Continue growth in supply chain solutions, dedicated contract carriage and commercial rental product lines Continue emphasis on prudent capital allocation; manage capital over replacement cycle Utilize balance sheet capacity to replenish fleet and grow Sustain focus on cost management and process improvements, while investing in sales and operational capabilities Drive growth across all product lines while continuing to demonstrate earnings leverage

Contents Fourth Quarter 2005 Results 2006 Forecast Financial Objectives Q & A

Financial Objectives (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. 2005 earnings per share growth excludes a net tax benefit. (2) Excludes acquisitions.

Q & A

Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations

Fleet Management Solutions (FMS) Fourth Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs. ($ Millions)

Fleet Management Solutions (FMS) Full Year (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of steady market fuel prices. However, profitability may be positively or negatively impacted by sudden increases or decreases in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs. ($ Millions)

Supply Chain Solutions (SCS) Fourth Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. Subcontracted Transportation is deducted from total revenue to arrive at operating revenue as Subcontracted Transportation is largely a pass through to customers. The Company realizes minimal changes in profitability as a result of fluctuations in Subcontracted Transportation. ($ Millions)

Supply Chain Solutions (SCS) (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. Subcontracted Transportation is deducted from total revenue to arrive at operating revenue as Subcontracted Transportation is largely a pass through to customers. The Company realizes minimal changes in profitability as a result of fluctuations in Subcontracted Transportation. Full Year ($ Millions)

Dedicated Contract Carriage (DCC) Fourth Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC business segment and as a measure of sales activity. Subcontracted Transportation is deducted from total revenue to arrive at operating revenue as Subcontracted Transportation is largely a pass through to customers. The Company realizes minimal changes in profitability as a result of fluctuations in Subcontracted Transportation. ($ Millions)

Dedicated Contract Carriage (DCC) (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC business segment and as a measure of sales activity. Subcontracted Transportation is deducted from total revenue to arrive at operating revenue as Subcontracted Transportation is largely a pass through to customers. The Company realizes minimal changes in profitability as a result of fluctuations in Subcontracted Transportation. Full Year ($ Millions)

Central Support Services (CSS) Fourth Quarter ($ Millions)

Central Support Services (CSS) Full Year ($ Millions)

Balance Sheet ($ Millions) Note: We determined that the portion of the acquisition cost of revenue earning equipment and service vehicles allocated to tires in service should be classified together with the related revenue earning equipment and service vehicles instead of as a current asset on our Consolidated Balance Sheet. The reclassification of tires in service to revenue earning equipment and service vehicles decreased current assets by $176 million and increased revenue earning equipment, net by $175 million and operating property and equipment, net by $1 million at December 31, 2004.

Redeployments Extensions Early Terminations Early Replacements FY 00 4496 2143 7012 3815 FY 01 5543 2850 7229 1416 FY 02 5650 5313 6253 1094 FY 03 4750 4167 4938 967 FY 04 4596 3042 5008 1584 FY 05 4095 3980 4170 1589 Asset Management Update (a) (a) U.S. only (b) Excludes early terminations where customer purchases vehicle. (b)

Non-Revenue Earning Equipment (a) Units Not Yet Earning Revenue - "NYE" Units No Longer Earning Revenue - "NLE" Total 11,072 Dec 2001 Total 10,361 Mar 2002 Total 8,838 Mar 2003 Total 8,691 June 2002 Total 8,433 Sept 2002 Total 8,131 Dec 2002 Total 7,985 Jun 2003 (a) U.S. only (b) Excludes units for which customer deposits have been received. Total 7,200 Sept 2003 Total 8,079 Dec 2003 5,215 Units held for sale (b) 3,485 Total 8,648 Mar 2004 4,187 Total 7,770 Jun 2004 Total 7,167 Sept 2004 4,274 Total 8,305 Dec 2004 Total 9,530 Sept 2005 4,742 Total 10,231 Mar 2005 Total 9,141 June 2005 Total 8,626 Dec 2005

Financial Indicators Forecast (1) (1) Free Cash Flow and Debt to Equity include acquisitions. Gross Capital Expenditures exclude acquisitions. (2) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Free Cash Flow -270 126 366 269 147 -210 -130 2000 2001 2002 2003 2004 2005 2006 Forecast Midpoint Lease 974 399 452 459 863 1082 1273 Rental 190 131 19 220 242 252 220 Other 23 51 85 0 0 0 0 PPE 102 76 44 46 60 77 100 $1,289 $600 $725 $1,165 $657 $1,411 2000 2001 2002 2003 2004 2005 2006 Forecast Midpoint Balance Sheet Debt to Equity 1.61 1.39 1.4 1.35 1.18 1.43 1.37 Total Obligations to Equity 1.14 0.95 0.61 0.11 0.11 0.08 0.04 275% 234% 141% 146% 129% 151% Debt to Equity Ratio Free Cash Flow (2) ($ Millions) Gross Capital Expenditures ($ Millions) (2) 2000 2001 2002 2003 2004 2005 2006 Forecast Midpoint $1,593 201%

Non-GAAP Financial Measures This presentation includes "non-GAAP financial measures" as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure and an explanation why management believes that presentation of the non-GAAP financial measure provides useful information to investors. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. Specifically, the following non-GAAP financial measures are included in this presentation. Unless otherwise noted, these non-GAAP financial measures are presented for the fourth quarter 2005, full year 2005 and 2006 forecast:

Net Earnings and EPS Reconciliation ($ Millions or $ Earnings Per Share) Note: Earnings per share amounts are calculated independently for each component and may not be additive due to rounding

Return on Capital Reconciliation (1) Adjusted earnings calculated based on a 12-month rolling period. (2) Amounts represent equity adjustments made to conform with the adjustments to the earnings calculation. (3) Average shareholders' equity and average debt are calculated quarterly using a weighted average. (4) Shareholders' equity reflects impact of accumulated net pension related equity charge of $221 million as of 12/31/05 and $189 million as of 12/31/04. (5) The Company adopted return on capital, a non-GAAP financial measure, as the Company believes that both debt (including off-balance sheet debt) and equity should be included in evaluating how effectively capital is utilized across the business. Note: Totals may not foot due to rounding differences. ($ Millions)

Free Cash Flow Reconciliation (1) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. (2) The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes free cash flow provides investors with an important perspective on the cash available for debt service and shareholders after making capital investments required to support ongoing business operations. The calculation of free cash flow may be different from the calculation used by other companies and therefore comparability may be limited. (3) Amounts have not been recasted to give effect for the impact of foreign exchange movements on cash for which the impact is not expected to be significant. ($ Millions)

Debt to Equity Reconciliation Note: In connection with adopting FIN 46 effective July 1, 2003, the Company consolidated the vehicle securitization trusts previously disclosed as off-balance sheet debt. (1) The Company uses total obligations and total obligations to equity, non-GAAP financial measures, which include certain off-balance sheet financial obligations relating to revenue earning equipment. Management believes these non-GAAP financial measures are useful to investors as they are more complete measures of the Company's existing financial obligations and help investors better assess the Company's overall leverage position. ($ Millions)