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): October 25, 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)	(I.R.S. Employer Identification No.)
11690 NW 105th Street Miami, Florida		33178
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (305) 500-3726

Not Applicable

(Former name or former address, if changed since last report)

     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 October 25, 2006, we issued a press release reporting our financial results for the three and nine months ended September 30, 2006 (the “Press Release”). We also hosted a conference call and webcast on October 25, 2006 during which we made a presentation on our financial results for the three and nine months ended September 30, 2006 (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 net earnings and earnings per share excluding tax changes and pension charge, which are non-GAAP financial measures as defined by SEC regulations. We believe that these non-GAAP financial measures provide useful information to investors as the measures exclude from our GAAP earnings and earnings per share tax changes and a pension charge unrelated to our ongoing business operations. Additional information regarding non-GAAP financial measures can be found in the Press Release, the Presentation and our reports filed with the SEC.

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(d) Exhibits

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

Exhibit 99.1	Press Release, dated October 25, 2006, relating to Ryder System, Inc.’s financial results for the three and nine months ended September 30, 2006.
Exhibit 99.2	Presentation prepared for a conference call and webcast held on October 25, 2006, relating to Ryder System, Inc.’s financial results for the three and nine months ended September 30, 2006.

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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: October 25, 2006	RYDER SYSTEM, INC. (Registrant)
	By:	/s/ Mark T. Jamieson
		Mark T. Jamieson, Executive Vice
		President and Chief Financial Officer

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EX-99.1

EXHIBIT 99.1

News Release

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

RYDER REPORTS THIRD QUARTER 2006 RESULTS

• Third Quarter EPS of $1.06, Includes a $0.06 One-Time Pension Charge

• Comparable EPS of $1.12 Increases 14%

• Revenue Up 9%; Operating Revenue Grows 7%

• Full Year EPS Forecast $4.01 to $4.06

     MIAMI, October 25, 2006 — Ryder System, Inc. (NYSE: R), a global leader in transportation and supply chain management solutions, today reported earnings per diluted share (EPS) of $1.06 for the three-month period ended September 30, 2006, up 8% compared with $0.98 in the year-earlier period. Earnings in the current period included a one-time, non-cash after-tax charge of $3.5 million to adjust the accounting for certain pension costs. Excluding this charge, EPS was up 14% to $1.12, compared with the Company’s previous EPS forecast range of $1.05 to $1.10 for the third quarter of 2006. EPS improvement reflects better business segment results and the impact of a stock repurchase program completed in February of 2006.

     Net earnings for the third quarter of 2006 were $65.3 million compared with $63.3 million in the year-earlier period. Excluding the pension accounting charge, earnings were up 9% to $68.8 million driven by better operating performance and continuing leverage from revenue growth in the Supply Chain Solutions (SCS) and Dedicated Contract Carriage (DCC) segments.

     Revenue for the third quarter of 2006 was $1.62 billion, up 9% from $1.49 billion in the comparable period last year with all business segments reporting revenue growth. Operating revenue (revenue excluding fuel and subcontracted transportation) was $1.14 billion, up 7% compared with $1.07 billion in the year-earlier period. Fleet Management Solutions (FMS) business segment revenue grew 5% driven by higher fuel services revenue and full service lease contract growth. SCS business segment revenue grew 19% in the third quarter of 2006 driven by higher volumes and new and expanded business in all industry groups, and an increase in

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managed subcontracted transportation. DCC business segment revenue increased 5% due to new and expanded business, and pricing increases associated with higher fuel costs.

     Earnings for the third quarter of 2006 were negatively affected by a one-time, non-cash after-tax charge of $3.5 million recorded to adjust the accounting for prior service costs related to retiree pension benefit improvements made in 1995 and 2000. During the quarter, the Company determined that these costs had not been amortized over the appropriate periods; however, the amounts involved were not material to the Company’s financial statements in any individual prior period. The adjustment recorded resulted in a cumulative correction that reduced earnings for the quarter.

     “We delivered a 14% increase in comparable EPS from 7% higher operating revenue, reflecting continued strong earnings on accelerated contractual revenue growth,” said Ryder Chairman and Chief Executive Officer Greg Swienton. “We were particularly pleased with the revenue and earnings growth across all industries of our supply chain business, including automotive, industrial, and notably strong performance within the high-tech and consumer sectors.”

Year-to-Date Operating Results

     Revenue for the nine months ended September 30, 2006 was $4.71 billion, up 12% from $4.20 billion in the same period of 2005. Operating revenue (revenue excluding fuel and subcontracted transportation) for the first nine months of 2006 was $3.31 billion, up 6% from $3.12 billion in the same period of 2005. Ryder’s 2006 year-to-date net earnings were $183.1 million, compared with $168.1 million in the year-earlier period. EPS was $2.97 through the first nine months of 2006 compared with $2.60 for the same period of 2005. EPS included an $0.11 income tax benefit related to a change in Texas and Canada income tax laws in 2006 and a $0.12 income tax benefit related to a change in Ohio income tax laws in 2005. Excluding the income tax benefits in both years and the previously discussed pension accounting charge, comparable year-to-date net earnings were up 12% to $179.9 million, and EPS was up 17% to $2.91, compared with the year-earlier period.

Third Quarter Business Segment Operating Results

     Ryder’s primary measurement of business segment financial performance, Net Before

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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 short-term capacity needs.

     In the FMS business segment, revenue in the third quarter of 2006 was $1.06 billion, up 5% compared with $1.01 billion in the year-earlier period. Fuel services revenue for the third quarter of 2006 increased 10% compared with the same period in 2005 due primarily to higher fuel pricing as a result of market cost increases. Operating revenue (revenue excluding fuel) in the third quarter of 2006 was $750.1 million, up 3% compared with $728.6 million in the year-earlier period. Full service lease revenue for the quarter was up 4% from the same period last year reflecting growth in all geographic markets. In the quarter, contract maintenance revenue increased 10% due to new sales activity, and contract-related maintenance revenue grew 4% from increased transactional business. Commercial rental revenue decreased 1% from the year-earlier period, reflecting a decline in rental fleet utilization.

     The FMS business segment’s NBT increased to $103.7 million in the third quarter of 2006, up 1% compared with $102.6 million in the same period of 2005. This improvement was related primarily to better North American lease and contract maintenance performance and lower depreciation costs. Those results were offset partially by higher marketing expenses, sales force and other compensation-related expenses in North America. Interest expense increased due primarily to planned higher debt levels to support investment in the contractual full service lease fleet, and higher leverage from share repurchases. Business segment NBT as a percentage of operating revenue was 13.8% in the third quarter of 2006, down 30 basis points compared with 14.1% 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,

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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, third quarter 2006 revenue totaled $513.8 million, up 19% from $433.4 million in the comparable period in 2005. Revenue grew primarily due to higher volumes and new and expanded business in all industry groups, and an increase in managed subcontracted transportation. Third quarter 2006 operating revenue (revenue excluding subcontracted transportation) was $299.1 million, up 18% compared with $254.3 million in the year-earlier period.

     The SCS business segment’s NBT was $16.4 million in the third quarter of 2006, up 54% from $10.6 million in the same quarter of 2005. The earnings increase was due to higher volumes and new and expanded business in all U.S. industry groups and better margins in the Company’s Brazil operations. Third quarter 2006 NBT for the business segment as a percentage of operating revenue was up 130 basis points at 5.5%, compared with 4.2% in the same quarter of 2005.

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, third quarter 2006 revenue totaled $146.4 million, up 5% compared with $139.0 million in the third quarter of 2005. Operating revenue (revenue excluding subcontracted transportation) in the third quarter of 2006 was $140.7 million, up 5% from $134.6 million in the year-earlier period. Revenue increased due to new and expanded business, as well as higher fuel costs passed through to customers.

     The DCC business segment’s NBT in the third quarter of 2006 was $11.7 million, up 27% compared with $9.2 million in the third quarter of 2005. Business segment NBT was positively impacted by new and expanded business and lower safety costs. Business segment

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NBT as a percentage of operating revenue was 8.3% in the third quarter of 2006, up 150 basis points from 6.8% 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. Substantially all CSS costs are allocated to the various business segments. In the third quarter of 2006, CSS costs were flat at $49.1 million, as lower information technology spending, principally from ongoing cost containment initiatives, was offset by higher share-based compensation from the expensing of stock options and incentive compensation.

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 revenues and cash flows to Ryder typically over a three- to ten-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.

     Capital expenditures were $1.26 billion for the nine-month period ended September 30, 2006, compared with $1.15 billion in the same period of 2005. Net capital expenditures (including proceeds from the sale of assets) were $1.01 billion for the first nine months of 2006, up from $894.8 million in the same period of 2005. The increase in capital expenditures reflects higher lease vehicle spending for replacement and expansion of customer fleets.

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Cash Flow and Leverage

     Operating cash flow through September 30, 2006 was $611.6 million, up 30% from $470.8 million in the same period of 2005. Total cash generated (including proceeds from used vehicle sales) through September 30, 2006, was $921.9 million, up 19% from $773.1 million in the same period of 2005. Free cash flow through September 30, 2006 was negative $253.8 million compared with negative $347.8 million for the year-earlier period. The improvement was due primarily to lower income tax payments, as the year-earlier period included a $176 million payment related to the 1998 to 2000 tax years, offset partially by increased capital spending.

     Balance sheet debt as of September 30, 2006 increased by $446.8 million compared with year-end 2005, due primarily to increased capital spending required to support contractual revenue growth, and the impact of share repurchases. The leverage ratio for balance sheet debt as of September 30, 2006 was 160%, compared with 143% at year-end 2005. Total obligations to equity as of September 30, 2006 were 166%, up from 151% at year-end 2005. 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.

Outlook

     Commenting on Ryder’s outlook, Mr. Swienton said, “Going forward, we are focused on optimizing returns on our commercial rental fleet, while accelerating the profitable growth of all of our contractual business within Fleet Management Solutions. We are also committed to the profitable growth of our offerings within Dedicated Contract Carriage and Supply Chain Solutions, which are entirely contract-based.”

     He continued, “We are setting our full-year 2006 forecast range at $4.01 to $4.06 per share including the $0.06 pension charge; this is based on a reaffirmation of our fourth quarter 2006 EPS forecast in the range of $1.05 to $1.10.” Ryder’s current full-year 2006 earnings forecast, excluding the tax changes and pension charge, is raised to the range of $3.96 to $4.01 per share.

About Ryder

     Ryder provides leading-edge transportation, logistics and supply chain management

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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, Latin America, Europe and Asia.

     The National Safety Council selected Ryder as the first transportation company to receive the Green Cross for Safety Medal — its highest honor — for exemplary commitment to workplace safety and corporate citizenship. For the ninth 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 375^th on the Fortune 500 and 1,433^rd on the Forbes Global 2000.

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

# # #

Note Regarding Forward-Looking Statements: Certain statements and information included in this presentation 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, our failure to successfully implement new sales growth initiatives in our FMS 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, the effect of severe weather events, labor strikes or work stoppages affecting our or our customers’ business operations, adequacy of accounting estimates and accruals particularly with respect to pension, taxes and revenue, changes in general economic conditions, sudden changes in fuel prices, availability of qualified drivers, our ability to manage our cost structure, new accounting pronouncements, rules, or interpretations, 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.

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.

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Conference Call and Webcast Information:
Ryder’s earnings conference call and webcast is scheduled for Wednesday, October 25, 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 Mark Jamieson.

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: RG4527662 and Passcode: RYDER.

Þ   To access audio replays of the conference and view a presentation of Ryder’s earnings results: Dial 1-800-510-9771 (outside U.S. dial 1-402-344-6800) and use the Passcode: 1025, then view the presentation by visiting the Investors area of Ryder’s website at www.ryder.com. A podcast of the call will also be available online within 24 hours after the end of the call.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS — UNAUDITED
Periods ended September 30, 2006 and 2005
(In millions, except per share amounts)

	Three Months						Nine Months
	2006			2005			2006			2005
Revenue	$	1,620.5			1,490.6		$	4,712.6			4,196.1
Operating expense		700.0			657.2			2,064.1			1,902.6
Salaries and employee-related costs		354.2			314.6			1,035.7			928.6
Subcontracted transportation		220.4			183.5			637.9			425.1
Depreciation expense		188.0			188.1			549.6			556.3
Gains on vehicle sales, net		(11.0	)		(12.3	)		(38.8	)		(38.1	)
Equipment rental		25.4			25.2			76.3			77.3
Interest expense		36.4			31.3			102.9			89.1
Miscellaneous income, net		(0.4	)		(2.1	)		(6.2	)		(7.4	)
Restructuring and other charges (recoveries), net		0.1			(0.4	)		(0.1	)		(0.6	)
		1,513.1			1,385.1			4,421.4			3,932.9
Earnings before income taxes		107.4			105.5			291.2			263.2
Provision for income taxes		(42.1	)		(42.2	)		(108.1	)		(95.1	)
Net earnings	$	65.3			63.3		$	183.1			168.1
Earnings per common share — Diluted:
Net earnings	$	1.06			0.98		$	2.97			2.60
Weighted-average shares outstanding — Diluted		61.7			64.5			61.7			64.8
Memo:
EPS Impact of pension accounting (charge)	$	(0.06	)		—		$	(0.06	)		—
EPS Impact of tax changes		—			—			0.11			0.12

RYDER SYSTEM, INC. AND SUBSIDIARIES

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

	(unaudited)
	September 30,		December 31,
	2006		2005
Assets:
Cash and cash equivalents	$	128.1		128.7
Other current assets		1,249.8		1,035.1
Revenue earning equipment, net		4,303.9		3,794.4
Operating property and equipment, net		497.5		486.8
Other assets		548.9		588.3
	$	6,728.2		6,033.3
Liabilities and shareholders’ equity:
Short-term debt / current portion of long-term debt	$	389.3		269.4
Other current liabilities		1,044.6		984.0
Long-term debt		2,242.9		1,916.0
Other non-current liabilities (including deferred income taxes)		1,406.0		1,336.4
Shareholders’ equity		1,645.4		1,527.5
	$	6,728.2		6,033.3

SELECTED KEY RATIOS

	September 30,			December 31,
	2006			2005
Debt to equity		160	%		143	%
Total obligations to equity (a) *		166	%		151	%

	Twelve months ended September 30,
	2006			2005
Return on average shareholders’ equity (b)		15.3	%		15.1	%
Return on average assets (b)		3.9	%		4.0	%
Return on capital*		8.0	%		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.

RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT REVENUE AND EARNINGS — UNAUDITED
Periods ended September 30, 2006 and 2005
(Dollars in millions)

	Three Months									Nine Months
	2006			2005			B(W)			2006			2005			B(W)
Revenue:
Fleet Management Solutions:
Full service lease	$	464.3			447.4			4	%	$	1,375.8			1,334.6			3	%
Contract maintenance		37.3			34.0			10	%		104.0			101.9			2	%
Contract-related maintenance		49.3			47.6			4	%		144.4			143.5			1	%
Commercial rental		181.5			183.4			(1	%)		502.3			511.0			(2	%)
Other		17.7			16.2			9	%		53.2			50.3			6	%
Fuel		309.9			282.2			10	%		911.0			763.7			19	%
Total Fleet Management Solutions		1,060.0			1,010.8			5	%		3,090.7			2,905.0			6	%
Supply Chain Solutions		513.8			433.4			19	%		1,485.4			1,155.1			29	%
Dedicated Contract Carriage		146.4			139.0			5	%		428.6			400.8			7	%
Eliminations		(99.7	)		(92.6	)		(8	%)		(292.1	)		(264.8	)		(10	%)
Total revenue	$	1,620.5			1,490.6			9	%	$	4,712.6			4,196.1			12	%
Operating Revenue: *
Fleet Management Solutions	$	750.1			728.6			3	%	$	2,179.7			2,141.3			2	%
Supply Chain Solutions		299.1			254.3			18	%		862.8			741.6			16	%
Dedicated Contract Carriage		140.7			134.6			5	%		413.3			389.2			6	%
Eliminations		(50.3	)		(49.0	)		(3	%)		(147.6	)		(147.1	)		—
Total operating revenue	$	1,139.6			1,068.5			7	%	$	3,308.2			3,125.0			6	%
Business segment earnings:
Earnings before income taxes:
Fleet Management Solutions	$	103.7			102.6			1	%	$	273.5			262.4			4	%
Supply Chain Solutions		16.4			10.6			54	%		45.1			25.4			77	%
Dedicated Contract Carriage		11.7			9.2			27	%		31.4			24.8			27	%
Eliminations		(8.6	)		(8.2	)		(4	%)		(24.6	)		(23.3	)		(6	%)
		123.2			114.2			8	%		325.4			289.3			12	%
Unallocated Central Support Services		(9.8	)		(9.1	)		(8	%)		(28.4	)		(26.7	)		(6	%)
Earnings before restructuring and other recoveries, net and income taxes		113.4			105.1			8	%		297.0			262.6			13	%
Restructuring and other (charges) recoveries, net and pension (charge)		(6.0	)		0.4		NA				(5.8	)		0.6		NA
Earnings before income taxes		107.4			105.5			2	%		291.2			263.2			11	%
Provision for income taxes		(42.1	)		(42.2	)		—			(108.1	)		(95.1	)		(14	%)
Net earnings	$	65.3			63.3			3	%	$	183.1			168.1			9	%

* 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.

RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION — UNAUDITED
Periods ended September 30, 2006 and 2005
(Dollars in millions)

	Three Months									Nine Months
	2006			2005			B(W)			2006			2005			B(W)
Fleet Management Solutions
Total revenue	$	1,060.0			1,010.8			5	%	$	3,090.7			2,905.0			6	%
Fuel revenue		(309.9	)		(282.2	)		10	%		(911.0	)		(763.7	)		19	%
Operating revenue *	$	750.1			728.6			3	%	$	2,179.7			2,141.3			2	%
Segment earnings before income taxes	$	103.7			102.6			1	%	$	273.5			262.4			4	%
Earnings before income taxes as % of total revenue		9.8	%		10.1	%					8.9	%		9.0	%
Earnings before income taxes as % of operating revenue *		13.8	%		14.1	%					12.5	%		12.3	%
Supply Chain Solutions
Total revenue	$	513.8			433.4			19	%	$	1,485.4			1,155.1			29	%
Subcontracted transportation		(214.7	)		(179.1	)		20	%		(622.6	)		(413.5	)		51	%
Operating revenue *	$	299.1			254.3			18	%	$	862.8			741.6			16	%
Segment earnings before income taxes	$	16.4			10.6			54	%	$	45.1			25.4			77	%
Earnings before income taxes as % of total revenue		3.2	%		2.4	%					3.0	%		2.2	%
Earnings before income taxes as % of operating revenue *		5.5	%		4.2	%					5.2	%		3.4	%
Memo: Fuel costs	$	26.6			23.8			(12	%)	$	79.3			66.5			(19	%)
Dedicated Contract Carriage
Total revenue	$	146.4			139.0			5	%	$	428.6			400.8			7	%
Subcontracted transportation		(5.7	)		(4.4	)		30	%		(15.3	)		(11.6	)		31	%
Operating revenue *	$	140.7			134.6			5	%	$	413.3			389.2			6	%
Segment earnings before income taxes	$	11.7			9.2			27	%	$	31.4			24.8			27	%
Earnings before income taxes as % of total revenue		8.0	%		6.6	%					7.3	%		6.2	%
Earnings before income taxes as % of operating revenue *		8.3	%		6.8	%					7.6	%		6.4	%
Memo: Fuel costs	$	27.8			24.9			(12	%)	$	80.4			67.7			(19	%)

* 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.

RYDER SYSTEM, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS — PRELIMINARY AND UNAUDITED
(In millions, except per share amounts)

OPERATING REVENUE RECONCILIATION	Three Months						Nine Months
	2006			2005			2006			2005
Total revenue	$	1,620.5			1,490.6		$	4,712.6			4,196.1
Fuel services and subcontracted transportation revenue		(530.3	)		(465.7	)		(1,548.9	)		(1,188.8	)
Fuel eliminations		49.4			43.6			144.5			117.7
Operating revenue *	$	1,139.6			1,068.5		$	3,308.2			3,125.0

CASH FLOW RECONCILIATION	Nine months ended September 30,
	2006			2005
Net cash provided by operating activities	$	611.6			470.8
Proceeds from sales (primarily revenue earning equipment)		256.9			252.6
Collections of direct finance leases		51.3			49.7
Other investing, net		2.1			—
Total cash generated *		921.9			773.1
Capital expenditures		(1,171.6	)		(1,105.8	)
Acquisitions		(4.1	)		(15.1	)
Free cash flow *	$	(253.8	)		(347.8	)

DEBT TO EQUITY RECONCILIATION	September 30,					December 31,
	2006		% to Equity			2005		% to Equity
On-balance sheet debt	$	2,632.2		160	%		2,185.4		143	%
Off-balance sheet debt — PV of minimum lease payments and guaranteed residual values under operating leases for vehicles (a)		91.7					117.0
Total obligations *	$	2,723.9		166	%		2,302.4		151	%

NET EARNINGS RECONCILIATION	Three Months				Nine Months
	2006		2005		2006			2005
Net earnings	$	65.3		63.3	$	183.1			168.1
Excluding tax changes and pension charge		3.5		—		(3.2	)		(7.6	)
Net earnings excluding tax changes and pension charge *	$	68.8		63.3	$	179.9			160.5

EPS RECONCILIATION	Three Months				Nine Months
	2006		2005		2006			2005
Earnings per share	$	1.06		0.98	$	2.97			2.60
Excluding tax changes and pension charge		0.06		—		(0.05	)		(0.12	)
Earnings per share excluding tax changes and pension charge *	$	1.12		0.98	$	2.91			2.48

RETURN ON CAPITAL RECONCILIATION	Twelve months ended September 30,
	2006			2005
Net earnings (12-month rolling period)	$	241.9			230.8
- Discontinued operations		(1.7	)		—
+ Cumulative effect of changes in accounting principles		2.4			—
+ Income taxes		142.4			118.3
Adjusted earnings before income taxes		385.0			349.1
+ Adjusted interest expense (b)		140.4			120.8
- Adjusted income taxes (c)		(202.8	)		(181.9	)
= Adjusted net earnings for ROC (numerator)	$	322.6			288.0
Average total debt	$	2,349.6			2,035.3
+ Average off-balance sheet debt		110.4			160.4
+ Average adjusted total shareholders’ equity (d)		1,577.4			1,530.6
= Adjusted average total capital (denominator)	$	4,037.4			3,726.3
Adjusted ROC *		8.0	%		7.7	%

Notes:

(a)	Discounted at the incremental borrowing rate at lease inception.
(b)	Interest expense includes implied interest on off-balance sheet vehicle obligations.
(c)	Income taxes were calculated using the effective income tax rate for the period exclusive of tax benefits recognized through September 30, 2006 and 2005.
(d)	Represents shareholders’ equity adjusted for discontinued operations, accounting changes and tax benefits in those periods.
*	Non-GAAP financial measure
	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.

EX-99.2

Third Quarter 2006 Earnings Conference Call October 25, 2006

TABLE OF CONTENTS

Safe Harbor Certain statements and information included in this presentation 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, our failure to successfully implement sales growth initiatives in our FMS 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, the effect of severe weather events, labor strikes or work stoppages affecting our or our customers' business operations, adequacy of accounting estimates and accruals particularly with respect to pension, taxes and revenue, changes in general economic conditions, sudden changes in fuel prices, availability of qualified drivers, our ability to manage our cost structure, new accounting pronouncements, rules or interpretations, 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 Third Quarter 2006 Results Overview Asset Management Update Earnings Outlook Q & A

3rd Quarter Results Overview Earnings per diluted share were $1.06, up 8% from $0.98 in 3Q05 3Q06 includes $0.06 related to pension accounting charge Comparable earnings per diluted share were $1.12, up 14% from $0.98 in 3Q05 Total revenue up 9% and operating revenue up 7% reflecting growth in all business segments Fleet Management Solutions (FMS) total revenue up 5% and operating revenue up 3% vs. prior year Full service lease revenue increased 4% Contract maintenance revenue up 10% Commercial rental revenue down 1% FMS net before tax earnings (NBT) up 1% FMS NBT percent of operating revenue down 30 basis points to 13.8% FMS earnings positively impacted by improved lease and contract maintenance results, partially offset by higher sales & marketing and other compensation-related costs

3rd Quarter Results Overview (cont'd) Supply Chain Solutions (SCS) total revenue up 19% (and operating revenue up 18%) vs. prior year, reflecting higher volumes, new / expanded business and increased managed subcontracted transportation SCS net before tax earnings (NBT) up 54% SCS NBT percent of operating revenue up 130 basis points to 5.5% SCS earnings positively impacted by higher volumes, and new and expanded business Dedicated Contract Carriage (DCC) total revenue up 5% (and operating revenue up 5%) 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 27% DCC NBT percent of operating revenue up 150 basis points to 8.3% DCC earnings positively impacted by revenue growth from new and expanded business as well as lower safety costs

Key Financial Statistics Third Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (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 net of related intersegment billings, 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. ($ Millions, Except Per Share Amounts)

Key Financial Statistics Year-to-Date (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (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 net of related intersegment billings, 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. ($ Millions, Except Per Share Amounts)

Business Segment Third Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net and the pension charge; however, the applicable portion of the restructuring and other (charges)/recoveries, net and the pension charge that related to each segment was as follows: FMS - ($6.0) and $0.4 in 2006 and 2005, respectively. ($ Millions)

Business Segment Year-to-Date ($ Millions) (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net and the pension charge; however, the applicable portion of the restructuring and other (charges)/recoveries, net and the pension charge that related to each segment was as follows : FMS - ($5.9) and SCS - $0.1 in 2006 and FMS - $0.5 and SCS - $0.1 in 2005.

Capital Expenditures Year-to-Date ($ Millions)

Cash Flow (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures (2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment Year-to-Date ($ Millions)

Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $221 million as of 9/30/06 and 12/31/05, and $189 million as of 9/30/05. (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Represents long term total obligations to equity target of 250 - 300% while maintaining a strong investment grade rating. (1) (2) ($ Millions)

Contents Third Quarter 2006 Results Overview Asset Management Update Earnings Outlook Q & A

Asset Management Update Note: U.S. only The overall number of used vehicles sold in the third quarter was 4,952; down 4% compared with prior year Retail vehicles sold were down 2% vs. prior year period Retail sales proceeds per unit were up 7% on tractors and down 4% on trucks in the third quarter compared with prior year Vehicles no longer earning revenue are 5,702; down 1,527 or 21% vs. prior year driven primarily by a lower used truck center inventory 3,393 of these units are held for sale at the used truck centers Commercial rental fleet is flat year-over-year and down 3% from planned fleet levels

Contents Third Quarter 2006 Results Overview Asset Management Update Earnings Outlook Q & A

Earnings Outlook ($ Earnings Per Share) Our full year 2006 earnings forecast, including the tax changes and pension charge, is now $4.01 to $4.06 per share. Current quarterly forecast for EPS is as follows:

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) Third 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) Year-to-Date (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) Third 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) Year-to-Date ($ Millions) (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.

Dedicated Contract Carriage (DCC) Third Quarter ($ Millions) (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.

Dedicated Contract Carriage (DCC) Year-to-Date ($ Millions) (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.

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

Central Support Services (CSS) Year-to-Date ($ Millions)

Balance Sheet ($ Millions)

Redeployments Extensions Early Terminations Early Replacements YTD01 3875 2026 5409 1172 YTD02 4412 3950 4914 837 YTD03 3810 3184 3800 723 YTD04 3890 2179 3631 1090 YTD05 3071 2863 3436 1202 YTD06 2819 3020 2819 1142 Asset Management Update (a) (a) U.S. only (b) Excludes early terminations where customer purchases vehicle (b)

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. (3) Includes $176 million payment to the IRS related to full resolution of 1998 - 2000 tax period matters. ($ Millions) Free Cash Flow 1054 835 949 1078 1263 1183 1398 Total Cash Generated (2) 2000 2001 2002 2003 2004 2005 2006 Forecast Midpoint Gross Capital Expenditures Free Cash Flow Revenue Earning Equipment 1164 530 471 679 1105 1334 1683 PP&E/Other 125 127 129 46 60 77 100 $1,289 $600 $725 $1,165 $657 $1,411 $1,783 2000 2001 2002 2003 2004 2005 2006 Forecast Midpoint Memo: Free Cash Flow (2) 131 367 260 140 (231)(3) (300) (270) PP&E/Other Total Obligations to Equity Ratio (2) 2000 2001 2002 2003 2004 2005 2006 Forecast Midpoint Memo: Assets Under Management 6,928 6,626 6,751 7,301 7,534 7,900 7,030 275% 201% 146% 129% 234% 151% 159% Total Obligations (2) Significant and predictable cash generation Invest in growth Increase assets under management Increase financial leverage

Assets Under Management (a) ($ Millions) (a) Assets under management represent the original cost of all vehicles owned and held under lease by Ryder. (b) Excludes impact of foreign exchange movements in 2006.

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:

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

Adjusted Return on Capital Reconciliation (1) Earnings calculated based on a 12-month rolling period. (2) Interest expense includes implied interest on off-balance sheet vehicle obligations. (3) Income taxes were calculated using the effective income tax rate for the period exclusive of tax benefits recognized through September 30, 2006 and 2005. (4) Represents shareholders' equity adjusted for discontinued operations, accounting changes and the tax benefits in those periods. (5) The Company adopted adjusted 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: Prior year has been restated to conform with current year presentation ($ Millions)

Cash Flow Reconciliation (1) The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes total cash generated provides investors with an important measure of total cash inflows generated from our on-going business activities which include sales of revenue earning equipment, sales of operating property and equipment, collections on direct finance leases and other cash inflows. (2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. (3) 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. (4) 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)

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. ($ 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)

Debt to Equity Reconciliation (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)