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 2, 2007

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 February 2, 2007, we issued a press release reporting our financial results for the three and twelve months ended December 31, 2006 (the “Press Release”). We also hosted a conference call and webcast on February 2, 2007 during which we made a presentation on our financial results for the three and twelve months ended December 31, 2006 (the “Presentation”). The Press Release and the Presentation are available on our website at ww.ryder.com.

     The Press Release and the Presentation include information regarding our earnings from continuing operations and earnings per share excluding tax law changes and a pension accounting 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 the impact of tax law 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 February 2, 2007, relating to Ryder System, Inc.’s financial results for the three and twelve months ended December 31, 2006.
Exhibit 99.2	Presentation prepared for a conference call and webcast held on February 2, 2007, relating to Ryder System, Inc.’s financial results for the three and twelve months ended December 31, 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: February 2, 2007	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 FOURTH QUARTER AND FULL-YEAR 2006
RESULTS AND 2007 FORECAST

• Fourth Quarter EPS from Continuing Operations of $1.08, Up 16%

• Fourth Quarter Revenue Up 3%; Operating Revenue Grows 6%

• 2007 EPS Forecast to Increase 8% to 10% Over Comparable 2006 Levels

     MIAMI, February 2, 2007 — 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 $1.08 for the three-month period ended December 31, 2006, up 16% from EPS of $0.93 in the year-earlier period. EPS in the fourth quarter of 2006 included net restructuring and other charges of $0.01. Earnings from continuing operations were $65.8 million, up 11% from $59.5 million in the year-earlier period. EPS improvement reflects better business segment results and the impact of a stock repurchase program completed in February 2006.

     Net earnings for the fourth quarter of 2006 were also $65.8 million, or $1.08 per share, compared with $58.8 million, or $0.92 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, 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.

     Revenue for the fourth quarter of 2006 was $1.59 billion, up 3% from $1.54 billion in the comparable period last year. Operating revenue (revenue excluding fuel and subcontracted transportation) was $1.15 billion, up 6% compared with $1.09 billion in the year-earlier period. Fleet Management Solutions (FMS) business segment revenue decreased 1%, due to lower fuel services and commercial rental revenue, which offset strong contractual revenue growth of 5% for the quarter. Supply Chain Solutions (SCS) business segment revenue grew 13%, driven by new and expanded business in all industry groups. Dedicated Contract Carriage (DCC) business segment revenue decreased 2%, due to lower fuel revenues associated with declining fuel pricing and volumes.

     “Our contract-based business now represents nearly 90% percent of Ryder’s revenue,” said Ryder Chairman and Chief Executive Officer Greg Swienton. “The record revenue we achieved in 2006 reflects a very strong year of new business in which our sales teams secured long-term contracts with customers in all business segments. These multi-year agreements with quality customers provide a strong platform for delivering long-term profitable contractual growth across all of our business segments.”

     EPS from continuing operations for the fourth quarter of 2006 included a net restructuring and other charge of $0.01 per share. This net charge is comprised of early debt termination costs and severance in connection with global cost savings initiatives, and a one-time, non-cash charge for the adjustment of postretirement benefit plan obligations. These charges were partially offset by a pension re-measurement benefit. The fourth quarter 2006 pension re-measurement is unrelated to pension plan changes announced by the Company in January of 2007. EPS from continuing operations in the year-earlier period included restructuring costs of $0.04 related primarily to severance and the termination of an information technology contract as part of global cost-savings initiatives.

Full-Year 2006 Results

     Revenue for the full-year 2006 was $6.31 billion, up 10% from $5.74 billion in the comparable period of 2005. Operating revenue of $4.45 billion was up 6% from $4.21 billion in the same period of 2005. Ryder’s full-year 2006 earnings from continuing operations were $249.0 million compared with $227.6 million in the year-earlier period. EPS from continuing operations were $4.04 for 2006, up 14% compared with $3.53 for the same period of 2005. EPS from continuing operations 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. EPS from continuing operations in 2006 also included a $0.06 third quarter pension accounting charge related to the accounting for prior service costs. Full-year 2006 comparable earnings from continuing operations were $245.9 million, up 12% from $220.0 million in 2005. Excluding the income tax benefits in both years, and the third quarter pension charge in 2006, comparable full-year 2006 EPS from continuing operations of $3.99 were up 17% from $3.41 in 2005.

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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 and excludes restructuring and other (charges) recoveries, net, and certain 2006 retirement plan charges.

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 fourth quarter of 2006 was $1.01 billion, down 1% compared with the year-earlier period. Fuel services revenue for the fourth quarter of 2006 decreased 10% compared with the same period in 2005, due to lower fuel volume and pricing as a result of market cost decreases. Operating revenue (revenue excluding fuel) in the fourth quarter of 2006 was $741.3 million, up 2% compared with $723.6 million in the year-earlier period. Full service lease revenue for the fourth quarter of 2006 was up 5% from the year-earlier period reflecting growth in all geographic markets. In the quarter, contract maintenance revenue increased 16% due to continuing positive sales activity. Commercial rental revenue decreased 7% compared with the year-earlier period, reflecting lower utilization and pricing due to softer market demand conditions.

     The FMS business segment’s NBT increased to $94.5 million in the fourth quarter of 2006, up 3% compared with $92.0 million in the same period of 2005. This improvement was driven by better lease and contract maintenance results as well as higher gains on used vehicle sales. The improvement was partially offset by lower commercial rental results in North America and higher sales and marketing and other compensation-related costs. Business segment NBT as a percentage of operating revenue was 12.8% in the fourth quarter of 2006, up 10 basis points compared with 12.7% in the same quarter a year ago.

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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 2006 revenue totaled $543.1 million, up 13% from $482.7 million in the comparable period of 2005. Revenue grew due to higher volumes and new and expanded business in all industry groups, and an increase in managed subcontracted transportation. Operating revenue (revenue excluding subcontracted transportation) was $320.1 million, up 17% from $274.2 million in the comparable period a year ago.

     The SCS business segment’s NBT was $17.0 million in the fourth quarter of 2006, up 22% from $14.0 million in the same quarter of 2005. The earnings increase was related to higher volumes and new and expanded business in all U.S. industry groups. Business segment NBT as a percentage of operating revenue was 5.3% in the fourth quarter of 2006, up 20 basis points compared with 5.1% 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, fourth quarter 2006 revenue totaled $140.2 million, down 2% compared with $142.5 million in the fourth quarter of 2005. Operating revenue (revenue excluding subcontracted transportation) in the fourth quarter of 2006 was $135.6 million, down 2% compared with $137.8 million in the year-earlier period. Revenue decreased due to lower fuel revenues associated with declining fuel pricing and volumes.

     The DCC business segment’s NBT in the fourth quarter of 2006 was $11.2 million, up 8% compared with $10.4 million in the fourth quarter of 2005. Business segment NBT was positively impacted by lower safety and insurance costs, including a hurricane related recovery.

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Business segment NBT as a percentage of operating revenue was 8.3% in the fourth quarter of 2006, up 80 basis points compared with 7.5% 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. Substantially all CSS costs are allocated to the various business segments.

     In the fourth quarter of 2006, CSS costs were $49.3 million, down from $50.9 million in the year-earlier period. The decrease was due primarily to lower information technology spending from ongoing cost containment initiatives. Full-year CSS costs were $192.1 million, down from $198.3 million in 2005.

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 $1.76 billion for the full-year 2006, compared with $1.43 billion in 2005. Net capital expenditures (including proceeds from the sale of assets) were $1.43 billion, up from $1.09 billion in 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 December 31, 2006 was $853.6 million, up 10% from $779.1 million in the same period of 2005. Total cash generated (including proceeds from used vehicle sales) through December 31, 2006, was $1.25 billion, up 6% from $1.18 billion in the same period of 2005. Free cash flow through December 31, 2006 was negative $444.5 million compared with negative $231.3 million for 2005, primarily due to funding requirements associated with higher capital spending and pension contributions, partially offset by lower income tax payments.

     Balance sheet debt as of December 31, 2006 increased by $631.5 million compared with year-end 2005, due primarily to increased capital spending required to support contractual revenue growth, pension contributions, and the impact of share repurchases. The leverage ratio for balance sheet debt as of December 31, 2006 was 164%, compared with 143% at year-end 2005. Total obligations to equity as of December 31, 2006 was 168%, 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.

2007 Forecast

     Ryder forecasts full-year 2007 earnings to be in the range of $4.30 to $4.40 per diluted share. This represents an EPS increase of 8% to 10% over Ryder’s comparable full-year 2006 EPS. The Company also established a first quarter 2007 EPS forecast of $0.80 to $0.84.

     “We are forecasting Ryder’s 2007 revenue to grow by 5% to 7%, with operating revenue growth of 4% to 5%,” said Ryder Chairman and Chief Executive Officer Greg Swienton. “These levels of revenue growth are expected to be driven primarily by a 5% to 6% increase in core contractual Fleet Management revenue, offset by an expected 6% to 7% reduction in transactional revenue related to our smaller commercial rental business. Additionally, Supply Chain revenue is forecast to grow 12% to 14% and Dedicated Contract Carriage revenue is expected to increase by 2% to 3%. Based on the momentum of our contract-related business in all segments, we enter 2007 well positioned to deliver on our profitable growth objectives.”

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     The Company anticipates 2007 capital expenditures to be $1.33 billion; net capital expenditures (including proceeds from sale of assets) are expected to be $855 million. Cash from operations is forecast to be $1.10 billion with total cash generated of $1.49 billion and free cash flow of $235 million in 2007. The planned improvement in cash flow for 2007 is expected to be driven by higher cash flow from operating activities coupled with lower required spending to support vehicle replacements for customers of the Company’s full service lease product line.

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, 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 news release are “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements including those risks set forth in our periodic filings with the Securities and Exchange Commission. New risks emerge from time to time. 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 Friday, February 2, 2007, 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: RG3251104 and Passcode: RYDER.
Þ	To access audio replays of the conference and view a presentation of Ryder’s earnings results: Dial 1-866-378-7479 (outside U.S. dial 1-203-369-0329) and use the Passcode: 2202, 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 at www.ryder.com.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS — UNAUDITED
Periods ended December 31, 2006 and 2005
(In millions, except per share amounts)

	Three Months						Year Ended
	2006			2005			2006			2005
Revenue	$	1,594.1			1,544.8		$	6,306.6			5,740.8
Operating expense		658.4			669.9			2,722.4			2,572.1
Salaries and employee-related costs		361.7			333.6			1,397.4			1,262.2
Subcontracted transportation		227.6			213.2			865.5			638.3
Depreciation expense		193.7			184.1			743.3			740.4
Gains on vehicle sales, net		(11.9	)		(9.0	)		(50.8	)		(47.1	)
Equipment rental		27.0			25.5			103.3			102.8
Interest expense		37.7			31.3			140.6			120.5
Miscellaneous income, net		(5.5	)		(1.6	)		(11.7	)		(8.9	)
Restructuring and other charges, net		3.6			4.0			3.6			3.4
		1,492.3			1,451.0			5,913.6			5,383.7
Earnings from continuing operations before income taxes		101.8			93.8			393.0			357.1
Provision for income taxes		(36.0	)		(34.3	)		(144.0	)		(129.5	)
Earnings from continuing operations		65.8			59.5			249.0			227.6
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	$	65.8			58.8		$	249.0			226.9
Earnings per common share — Diluted:
Continuing operations	$	1.08			0.93		$	4.04			3.53
Discontinued operations		—			0.03			—			0.03
Cumulative effect of change in accounting principle		—			(0.04	)		—			(0.04	)
Net earnings	$	1.08			0.92		$	4.04			3.52
Weighted-average shares outstanding — Diluted		61.2			63.9			61.6			64.6
Memo:
EPS Impact of pension accounting (charge)	$	—			—		$	(0.06	)		—
EPS Impact of tax law changes		—			—			0.11			0.12

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RYDER SYSTEM, INC. AND SUBSIDIARIES

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

	(unaudited)
	December 31,		December 31,
	2006		2005
Assets:
Cash and cash equivalents	$	128.6		128.7
Other current assets		1,133.2		1,035.1
Revenue earning equipment, net		4,509.3		3,794.4
Operating property and equipment, net		499.0		486.8
Other assets		558.8		588.3
	$	6,828.9		6,033.3
Liabilities and shareholders’ equity:
Short-term debt / current portion of long-term debt	$	332.7		269.4
Other current liabilities		934.9		984.0
Long-term debt		2,484.2		1,916.0
Other non-current liabilities (including deferred income taxes)		1,356.3		1,336.4
Shareholders’ equity		1,720.8		1,527.5
	$	6,828.9		6,033.3

SELECTED KEY RATIOS

	December 31,			December 31,
	2006			2005
Debt to equity		164	%		143	%
Total obligations to equity (a) *		168	%		151	%

	Year Ended December 31,
	2006			2005
Return on average shareholders’ equity (b)		15.5	%		14.6	%
Return on average assets (b)		3.9	%		3.9	%
Return on capital*		7.9	%		7.8	%

(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.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT REVENUE AND EARNINGS — UNAUDITED
Periods ended December 31, 2006 and 2005
(Dollars in millions)

	Three Months									Year Ended
	2006			2005			B(W)			2006			2005			B(W)
Revenue:
Fleet Management Solutions:
Full service lease	$	472.4			451.1			5	%	$	1,848.3			1,785.6			4	%
Contract maintenance		37.9			32.6			16	%		141.9			134.5			6	%
Contractual Revenue		510.3			483.7			5	%		1,990.2			1,920.1			4	%
Contract-related maintenance		48.7			47.6			2	%		193.1			191.1			1	%
Commercial rental		163.4			175.3			(7	%)		665.7			686.3			(3	%)
Other		18.9			17.0			11	%		72.1			67.4			7	%
Fuel		264.1			292.5			(10	%)		1,174.9			1,056.3			11	%
Total Fleet Management Solutions		1,005.4			1,016.1			(1	%)		4,096.0			3,921.2			4	%
Supply Chain Solutions		543.1			482.7			13	%		2,028.5			1,637.8			24	%
Dedicated Contract Carriage		140.2			142.5			(2	%)		568.8			543.3			5	%
Eliminations		(94.6	)		(96.5	)		2	%		(386.7	)		(361.5	)		(7	%)
Total revenue	$	1,594.1			1,544.8			3	%	$	6,306.6			5,740.8			10	%
Operating Revenue: *
Fleet Management Solutions	$	741.3			723.6			2	%	$	2,921.1			2,864.9			2	%
Supply Chain Solutions		320.1			274.2			17	%		1,182.9			1,015.8			16	%
Dedicated Contract Carriage		135.6			137.8			(2	%)		548.9			527.0			4	%
Eliminations		(51.0	)		(49.7	)		(3	%)		(198.7	)		(196.8	)		(1	%)
Total operating revenue	$	1,146.0			1,085.9			6	%	$	4,454.2			4,210.9			6	%
Business segment earnings:
Earnings before income taxes:
Fleet Management Solutions	$	94.5			92.0			3	%	$	368.1			354.4			4	%
Supply Chain Solutions		17.0			14.0			22	%		62.1			39.4			58	%
Dedicated Contract Carriage		11.2			10.4			8	%		42.6			35.1			21	%
Eliminations		(9.0	)		(9.5	)		3	%		(33.7	)		(32.7	)		(3	%)
		113.7			106.9			6	%		439.1			396.2			11	%
Unallocated Central Support Services		(11.1	)		(9.1	)		(22	%)		(39.5	)		(35.7	)		(10	%)
Earnings before restructuring and other charges, net and income taxes		102.6			97.8			5	%		399.6			360.5			11	%
Restructuring and other (charges) recoveries, net and 2006 net retirement plan (charges)		(0.8	)		(4.0	)	NA				(6.6	)		(3.4	)	NA
Earnings from continuing operations before income taxes		101.8			93.8			9	%		393.0			357.1			10	%
Provision for income taxes		(36.0	)		(34.3	)		(5	%)		(144.0	)		(129.5	)		(11	%)
Earnings from continuing operations		65.8			59.5			11	%		249.0			227.6			9	%
Discontinued operations, net of tax		—			1.7		NA				—			1.7		NA
Cumulative effect of change in accounting principle, net of tax		—			(2.4	)	NA				—			(2.4	)	NA
Net earnings	$	65.8			58.8			12	%	$	249.0			226.9			10	%

*	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.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION — UNAUDITED
Periods ended December 31, 2006 and 2005
(Dollars in millions)

	Three Months									Year Ended
	2006			2005			B(W)			2006			2005			B(W)
Fleet Management Solutions
Total revenue	$	1,005.4			1,016.1			(1	%)	$	4,096.0			3,921.2			4	%
Fuel revenue		(264.1	)		(292.5	)		(10	%)		(1,174.9	)		(1,056.3	)		11	%
Operating revenue *	$	741.3			723.6			2	%	$	2,921.1			2,864.9			2	%
Segment earnings before income taxes	$	94.5			92.0			3	%	$	368.1			354.4			4	%
Earnings before income taxes as % of total revenue		9.4	%		9.1	%					9.0	%		9.0	%
Earnings before income taxes as % of operating revenue *		12.8	%		12.7	%					12.6	%		12.4	%
Supply Chain Solutions
Total revenue	$	543.1			482.7			13	%	$	2,028.5			1,637.8			24	%
Subcontracted transportation		(223.0	)		(208.5	)		7	%		(845.6	)		(622.0	)		36	%
Operating revenue *	$	320.1			274.2			17	%	$	1,182.9			1,015.8			16	%
Segment earnings before income taxes	$	17.0			14.0			22	%	$	62.1			39.4			58	%
Earnings before income taxes as % of total revenue		3.1	%		2.9	%					3.1	%		2.4	%
Earnings before income taxes as % of operating revenue *		5.3	%		5.1	%					5.3	%		3.9	%
Memo: Fuel costs	$	24.9			25.5			2	%	$	104.2			92.0			(13	%)
Dedicated Contract Carriage
Total revenue	$	140.2			142.5			(2	%)	$	568.8			543.3			5	%
Subcontracted transportation		(4.6	)		(4.7	)		(2	%)		(19.9	)		(16.3	)		22	%
Operating revenue *	$	135.6			137.8			(2	%)	$	548.9			527.0			4	%
Segment earnings before income taxes	$	11.2			10.4			8	%	$	42.6			35.1			21	%
Earnings before income taxes as % of total revenue		8.0	%		7.3	%					7.5	%		6.5	%
Earnings before income taxes as % of operating revenue *		8.3	%		7.5	%					7.8	%		6.7	%
Memo: Fuel costs	$	24.3			26.4			8	%	$	104.6			94.1			(11	%)

*	Non-GAAP financial measure
	Note: Amounts may not recalculate due to rounding.

12

RYDER SYSTEM, INC. AND SUBSIDIARIES

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

OPERATING REVENUE RECONCILIATION

	Three Months						Year Ended
	2006			2005			2006			2005
Total revenue	$	1,594.1			1,544.8		$	6,306.6			5,740.8
Fuel services and subcontracted transportation revenue		(491.7	)		(505.7	)		(2,040.4	)		(1,694.6	)
Fuel eliminations		43.6			46.8			188.0			164.7
Operating revenue *	$	1,146.0			1,085.9		$	4,454.2			4,210.9

CASH FLOW RECONCILIATION

	Year ended December 31,
	2006			2005
Net cash provided by operating activities	$	853.6			779.1
Proceeds from sales (primarily revenue earning equipment)		332.7			333.7
Collections on direct finance leases		66.3			70.4
Other investing, net		2.1			—
Total cash generated *		1,254.7			1,183.2
Capital expenditures		(1,695.1	)		(1,399.4	)
Acquisitions		(4.1	)		(15.1	)
Free cash flow *	$	(444.5	)		(231.3	)

DEBT TO EQUITY RECONCILIATION

	December 31,					December 31,
	2006		% to Equity			2005		% to Equity
On-balance sheet debt	$	2,816.9		164	%	$	2,185.4		143	%
Off-balance sheet debt — PV of minimum lease payments and guaranteed residual values under operating leases for vehicles (a)		78.0					117.0
Total obligations *	$	2,894.9		168	%	$	2,302.4		151	%

NET EARNINGS RECONCILIATION

	Three Months				Year Ended
	2006		2005		2006			2005
Net earnings from continuing operations	$	65.8		59.5	$	249.0			227.6
Excluding tax law changes and pension charge		—		—		(3.1	)		(7.6	)
Net earnings excluding tax law changes and pension charge *	$	65.8		59.5	$	245.9			220.0

EPS RECONCILIATION

	Three Months				Year Ended
	2006		2005		2006			2005
Earnings per share from continuing operations	$	1.08		0.93	$	4.04			3.53
Excluding tax law changes and pension charge		—		—		(0.05	)		(0.12	)
Earnings per share excluding tax law changes and pension charge *	$	1.08		0.93	$	3.99			3.41

RETURN ON CAPITAL RECONCILIATION

	Year Ended December 31,
	2006			2005
Net earnings (12-month rolling period)	$	249.0			226.9
- Discontinued operations		—			(1.7	)
+ Cumulative effect of change in accounting principle		—			2.4
+ Income taxes		144.0			129.5
Adjusted earnings before income taxes		393.0			357.1
+ Adjusted interest expense (b)		146.6			127.1
- Adjusted income taxes (c)		(207.2	)		(185.9	)
= Adjusted net earnings for ROC (numerator)	$	332.4			298.3
Average total debt	$	2,480.3			2,147.8
+ Average off-balance sheet debt		98.8			147.9
+ Average adjusted total shareholders’ equity (d)		1,605.2			1,550.0
= Adjusted average total capital (denominator)	$	4,184.3			3,845.7
Adjusted ROC *		7.9	%		7.8	%

	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 benefits from tax law changes recognized in 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.

13

EX-99.2

TABLE OF CONTENTS

Fourth Quarter 2006 Earnings & 2007 Forecast February 2, 2007 Conference Call

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 Fourth Quarter 2006 Results Overview Asset Management Update 2007 Forecast Q & A

4th Quarter Results Overview Earnings per diluted share were $1.08, up 17% from $0.92 in 4Q05 4Q06 includes $0.01 net restructuring and other charges 4Q05 includes $0.04 restructuring costs, $0.04 charge from cumulative effect of accounting change and $0.03 benefit from discontinued operations Earnings per diluted share from continuing operations were $1.08, up 16% from $0.93 in 4Q05 Total revenue up 3% (and operating revenue up 6%) Fleet Management Solutions (FMS) total revenue down 1% (and operating revenue up 2%) vs. prior year Fuel revenue down 10% (first decline in recent periods; impacts total revenue) Contractual revenue increased 5% Full service lease revenue up 5% and contract maintenance revenue up 16% Commercial rental revenue down 7% FMS net before tax earnings (NBT) up 3% FMS NBT percent of operating revenue up 10 basis points to 12.8% FMS earnings positively impacted by improved lease and contract maintenance results as well as higher gains on used vehicle sales, partially offset by lower commercial rental results in North America and higher sales & marketing and other compensation-related costs

4th Quarter Results Overview (cont'd) Supply Chain Solutions (SCS) total revenue up 13% (and operating revenue up 17%) vs. prior year, reflecting higher volumes, new / expanded business and increased managed subcontracted transportation SCS net before tax earnings (NBT) up 22% SCS NBT percent of operating revenue up 20 basis points to 5.3% SCS earnings positively impacted by higher volumes, and new and expanded business Dedicated Contract Carriage (DCC) total revenue down 2% (and operating revenue down 2%) vs. prior year; decrease due to lower fuel revenues associated with declining fuel prices and volumes DCC net before tax earnings (NBT) up 8% DCC NBT percent of operating revenue up 80 basis points to 8.3% DCC earnings positively impacted by lower safety and insurance costs including hurricane-related recovery

Key Financial Statistics Fourth 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 Full Year (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable earnings per share exclude tax law changes and pension charge. (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. (3) Includes 2006 net restructuring and other (charges)/recoveries and the fourth quarter 2006 net retirement plan charges. ($ Millions, Except Per Share Amounts)

Business Segment Fourth 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 2006 net retirement plan charges; however, the applicable portion of the restructuring and other (charges)/recoveries, net and net retirement plan charges that related to each segment was as follows: FMS - $0.2, SCS - ($0.9) and CSS - ($0.1) in 2006; and FMS - ($3.3) and SCS - ($0.7) in 2005. ($ Millions)

Business Segment Full Year (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 2006 net retirement plan charges; however, the applicable portion of the restructuring and other (charges)/recoveries, net and net retirement plan charges that related to each segment was as follows: FMS - ($5.6), SCS - - ($0.9) and CSS - ($0.1) in 2006; and FMS - ($2.7) and SCS - ($0.7) in 2005. ($ Millions)

Capital Expenditures Full Year ($ 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 Full Year ($ Millions)

Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $201 million and $221 million as of 12/31/06 and 12/31/05, respectively. (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Represents long term total obligations to equity target of 250 - 300% while maintaining a strong investment grade rating. (1) (2) ($ Millions)

Contents Fourth Quarter 2006 Results Overview Asset Management Update 2007 Forecast Q & A

Asset Management Update Note: U.S. only The overall number of used vehicles sold in the fourth quarter was 4,722, down 15% compared with prior year due to reduced levels of wholesale activity Retail vehicles sold were up 3% vs. prior year period Retail sales proceeds per unit were up 1% on tractors and down 6% on trucks in the fourth quarter compared with prior year Vehicles no longer earning revenue are 8,497; up 1,563 or 23% vs. prior year driven primarily by a higher used truck center inventory 5,707 of these units are held for sale at the used truck centers Commercial rental fleet is down 2% year-over-year and down 4% from planned fleet levels

Contents Fourth Quarter 2006 Results Overview Asset Management Update 2007 Forecast Q & A

2007 Overall Environment Upside / Opportunities Issues / Risks Overall economy stable Lower fuel prices Strength and currency stability in emerging markets Attractive real interest rates Softer housing market Automotive production levels Tight employment markets U.S. dollar strengthening Modest Inflation Full Employment Moderate GDP Growth Solid Industrial Production ? ? ? ?

FMS Assumptions / Drivers Upside / Opportunities Issues / Risks Positive 2006 lease / contract maintenance sales carryover New retention and sales initiatives Stronger cash flow Stable used vehicle pricing and improving vehicle residual values Pension performance benefit due to 2006 market returns and discount rate Continue process improvement initiatives Softer freight demand Declining rental revenue Fewer miles driven OEM tractor production decline & potential market acceptance issues Management of used vehicle inventory through replacement cycle Fuel price volatility (impacts gross revenue growth rate only, not earnings)

SCS / DCC Assumptions / Drivers Upside / Opportunities Issues / Risks Strong customer retention and business development focus Continue customer base diversification Expand related service offerings Continue process improvement initiatives Softer freight demand Potential automotive volume impacts and plant closures Driver recruiting / retention Potential U.S. dollar strengthening (impacts SCS International) Fuel price volatility (impacts revenue growth rate)

Key Financial Statistics (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable earnings and comparable EPS exclude tax law changes and pension charge in 2006. (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. Note: Earnings per share amounts are calculated independently for each component and may not be additive due to rounding. ($ Millions, Except Per Share Amounts)

Business Segment Revenue * Includes full service lease and contract maintenance

2007 Causes of EPS Change (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Excludes $0.05 net benefit from tax law changes and pension charge. ($ Earnings Per Share) + Depreciation - - Used Vehicle Sales + Pension Performance - - Pension Funding Interest - - Medical - - SFAS123R + Contractual Revenue - - Rental Revenue $3.99 (1) (0.02) 0.03 - 0.05 0.12 - 0.15 0.25 - 0.30 $4.30 - $4.40 (0.07)

Business Segment Earnings Full Year 2001 2002 2003 2004 2005 2006 2007 Forecast Midpoint Segment NBT as % of Operating Revenue 5.9 6.7 6 8.7 9 9 9.3 Segment NBT as % of Total Revenue 7.3 8.2 7.5 11.2 12.4 12.6 13.1 Fleet Management Solutions Supply Chain Solutions Dedicated Contract Carriage 2001 2002 2003 2004 2005 2006 2007 Forecast Midpoint Segment NBT as % of Operating Revenue -0.6 -0.4 2.9 2.7 2.4 3.1 3 Segment NBT as % of Total Revenue -0.8 -0.6 4.2 4 3.9 5.3 5.3 2001 2002 2003 2004 2005 2006 2007 Forecast Midpoint Segment NBT as % of Total Revenue 6.2 6 6.8 5.8 6.5 7.5 7.7 Segment NBT as % of Operating Revenue 6.3 6.1 6.9 5.9 6.7 7.8 7.8 Segment NBT as % of Total Revenue Segment NBT as % of Operating Revenue (1) (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.

Capital Expenditures Full Service Lease: Capital for lease vehicles is committed after contracts are signed with customers 2007 lease capital expenditures include: Replacement spending of $800 - $850 million Growth spending of $80 - $180 million Growth capital represents an investment which results in $15 - $35 million of incremental 2007 revenue or $30 - $65 million of annualized revenue Commercial Rental: 2007 rental capital expenditures include: Replacement spending of $270 million

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

EPS Forecast (1) First quarter 2006 includes $0.02 benefit from stock demutualization. (2) Non-GAAP financial measure. Excludes tax changes and pension charge in 2006. ($ Earnings Per Share)

Summary Focus on strong customer retention, new business development and sales/marketing initiatives Continue growth in full service lease/contract maintenance, supply chain solutions and dedicated contract carriage product lines Manage through cyclical impacts in commercial rental product line Balance sheet capacity to support growth and financial leverage targets Sustain focus on cost management and process improvements, while investing in sales and operational capabilities Drive growth from customer outsourcing in contractual product lines while managing through cyclical impacts

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) Full Year ($ 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) Fourth 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) Full Year ($ 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) Fourth Quarter ($ Millions)

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

Balance Sheet ($ Millions)

Redeployments Extensions Early Terminations Early Replacements FY01 5543 2850 7229 1416 FY02 5650 5313 6253 1094 FY03 4750 4167 4938 967 FY04 4596 3042 5008 1584 FY05 4104 3996 4539 1646 FY06 3572 4360 3748 1839 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 1255 1485 Total Cash Generated (2) 2000 2001 2002 2003 2004 2005 2007 Forecast Midpoint Significant and predictable cash generation Invest in growth Increase assets under management Increase financial leverage 2006 Total Obligations to Equity Ratio (2) Free Cash Flow Total Obligations 3450 2885 2233 1969 1944 2302 2895 2740 Equity 1253 1231 1108 1344 1510 1527 1721 1950 2000 2001 2002 2003 2004 2006 2007 Forecast Midpoint Memo: Assets Under Management 6,928 6,626 6,751 7,301 7,534 8,275 7,030 275% 201% 146% 129% 234% 151% 140% Total Obligations (2) 2005 168% 8,141 $1,760 2006 (444)

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 2007.

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 2006, full year 2006 and 2007 forecast.

EPS and 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 benefits from tax law changes recognized in 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) 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. ($ 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)