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): July 23, 2008

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 July 23, 2008, we issued a press release reporting our financial results for the three and six months ended June 30, 2008 (the “Press Release”). We also hosted a conference call and webcast on July 23, 2008 during which we made a presentation on our financial results for the three and six months ended June 30, 2008 (the “Presentation”). The Press Release and the Presentation are available on our website at www.ryder.com.

The Press Release and Presentation include information regarding comparable net earnings, comparable earnings per share and comparable earnings per share forecast, each excluding Brazil charges, which are non-GAAP financial measures as defined by SEC regulations. We believe that these non-GAAP financial measures provide useful information to investors, and allow for better year-over-year comparison, as the measures exclude from our GAAP net earnings, earnings per share and earnings per share forecast, the impact of charges in the second quarter for prior years’ adjustments associated with our Brazilian Supply Chain Solutions operation. 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 July 23, 2008, relating to Ryder System, Inc.’s financial results for the three and six months ended June 30, 2008.

Exhibit 99.2 Presentation prepared for a conference call and webcast held on July 23, 2008, relating to Ryder System, Inc.’s financial results for the three and six months ended June 30, 2008.

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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: July 23, 2008	RYDER SYSTEM, INC. (Registrant)
	By:	/s/ Robert E. Sanchez
		Robert E. Sanchez, Executive Vice
		President and Chief Financial Officer

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EX-99.1

News Release

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

RYDER REPORTS SECOND QUARTER 2008 RESULTS

MIAMI, July 23, 2008 — Ryder System, Inc. (NYSE: R)

• Second Quarter EPS of $1.10 Include a $0.12 Charge for Brazil Related to Prior Years

• Comparable Second Quarter EPS of $1.22 Increase 14%

• Second Quarter Total Revenue Flat; Operating Revenue Grows 5%

• Full-Year Comparable EPS Forecast Held to Narrowed Range of $4.60 to $4.70

     Ryder System, Inc. (NYSE: R), a global leader in transportation and supply chain management solutions, today reported earnings per diluted share (EPS) of $1.10 for the three-month period ended June 30, 2008, up 3% from EPS of $1.07 in the year-earlier period. Net earnings were $62.9 million, down 3% from $65.1 million in the year-earlier period. Earnings in the current period included an after-tax charge of $6.8 million, or $0.12 per diluted share, in the Company’s Supply Chain Solutions (SCS) operations in Brazil to adjust accruals and tax deferrals related to prior years. Excluding this charge, comparable net earnings were up 7% to $69.8 million and comparable EPS were up 14% to $1.22. The Fleet Management Solutions (FMS) business segment demonstrated significant earnings improvement in the quarter. EPS growth exceeded earnings growth due to the impact of previously announced share repurchase programs.

     Total revenue for the second quarter of 2008 was $1.66 billion, flat compared with the same period of last year. Total revenue was impacted by a previously announced change from gross to net revenue reporting in a subcontracted transportation agreement, which has no impact on operating revenue or earnings. Operating revenue (revenue excluding FMS fuel and all subcontracted transportation), was $1.22 billion, up 5% compared with $1.16 billion in the year-earlier period. Both total and operating revenue benefited modestly from favorable foreign exchange rates related to international operations. FMS business segment total revenue increased 16% due to higher fuel services revenue, as well as contractual revenue growth of 5%.

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     SCS business segment total revenue declined 25% due to a previously announced change from gross to net reporting, as noted above, while operating revenue grew 6%. Dedicated Contract Carriage (DCC) business segment total and operating revenue increased 2% as the pass through of higher fuel costs more than offset the impact of the non-renewal of certain customer contracts.

     Earnings for the second quarter of 2008 were negatively affected by a pre-tax charge of $6.5 million ($6.8 million after tax) for prior years’ adjustments associated with the Company’s SCS operations in Brazil. Specifically, during the quarter, the Company determined that accruals, primarily for carrier transportation and loss contingencies related to tax and legal matters, were not established in the appropriate period; and deferrals, primarily for indirect value-added taxes, were overstated. The charges relate primarily to the period from 2004 to 2007 and were not material to the Company’s consolidated financial statements in any individual prior period. The adjustments resulted in a cumulative correction that reduced earnings for the quarter.

     Commenting on the Company’s second quarter performance, Ryder Chairman and CEO Greg Swienton said, “The Ryder team responded effectively and delivered another solid quarter in a challenging operating environment. Strong operational execution enabled us to overcome the impacts of multiple expected automotive strikes in North America and unexpected customs and cross-border strikes in South America, as well as operational issues in Brazil. Looking at the operating trends of the business, we are particularly pleased with the very strong performance within Fleet Management Solutions. That business segment demonstrated organic and acquisition-related growth within the contractual full service lease product line, rental improvement, and growth in contract maintenance.”

Second 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 items, and the Brazil charges related to prior years.

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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, total revenue in the second quarter of 2008 was $1.20 billion, up 16% compared with $1.04 billion in the year-earlier period. Fuel services revenue in the second quarter of 2008 increased 44% compared with the same period in 2007 due to higher fuel prices, partially offset by reduced fuel volumes. Operating revenue (revenue excluding fuel) in the second quarter of 2008 was $776.3 million, up 5% compared with $742.2 million in the year-earlier period. Both FMS total revenue and operating revenue included a favorable foreign exchange impact of 1%. Full service lease revenue increased 5% in the second quarter of 2008 reflecting growth in the North American market, including acquisitions. Contract maintenance revenue grew 5% in the second quarter of 2008 compared with the same period in the prior year due primarily to new contract sales. Commercial rental revenue increased 1% reflecting higher utilization. As a result of the Company’s actions to align the fleet size and mix with U.S. market demand, year-over-year rental fleet utilization improved for the third consecutive quarter.

     The FMS business segment’s NBT increased to $115.8 million in the second quarter of 2008, up 19% compared with $97.5 million in the same period of 2007. This increase was related primarily to improved contractual business performance, and, to a lesser extent, higher fuel margins associated with unusually rapid increases in fuel prices, and acquisitions. Overall used vehicle results in 2008 reflect the impact of a smaller used truck inventory compared with the prior year. Gains from the sale of used vehicles decreased primarily because of a decline in the number of used vehicles sold and were more than offset by lower carrying costs. Business segment NBT as a percentage of operating revenue was 14.9% in the second quarter of 2008, up 180 basis points compared with 13.1% 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, integrated process — from materials and components 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.

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     In the SCS business segment, second quarter 2008 total revenue was $440.9 million, down 25% from $584.0 million in the comparable period in 2007. Revenue declined due to a previously announced change in reporting of a transportation services arrangement from a gross to a net basis. This change arose from a customer contract modification effective January 1, 2008, and does not affect operating revenue or earnings. Excluding this contract change, total revenue grew 9% in the second quarter of 2008.

     Second quarter 2008 operating revenue (revenue excluding subcontracted transportation) was $349.7 million, up 6% compared with $330.0 million in the comparable period a year ago. Operating revenue grew primarily due to the favorable impact of foreign exchange rates, higher fuel costs, and new and expanded business. Growth was partially offset by the impact of previously announced automotive strikes. SCS total revenue and operating revenue included a favorable foreign exchange impact of 3% and 2%, respectively.

     The SCS business segment’s NBT was $6.8 million in the second quarter of 2008, down 56% from $15.5 million in the same quarter of 2007 driven by lower operating results in Brazil and the adverse impact of several North American automotive strikes. Segment results do not include the impact of the previously discussed Brazil charges related to prior years. Operating results in Brazil declined $8.1 million from last year due to higher transportation costs, the impact from customs and cross-border strikes, and adverse developments in 2008 of certain litigation-related matters. Results were also impacted by $3.1 million from automotive strikes in North America which ended during May 2008. Second quarter 2008 NBT for the business segment as a percentage of operating revenue was 1.9%, compared with 4.7% in the same quarter of 2007.

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, second quarter 2008 total revenue of $143.7 million was up 2% compared with $141.1 million in the second quarter of 2007. Operating revenue (revenue excluding subcontracted transportation) in the second quarter of 2008 was $141.3 million, up 2% compared with $138.1 million in the year-earlier period. Operating revenue grew due to the pass through of higher fuel costs partially offset by the impact of the non-renewal of certain customer contracts.

     The DCC business segment’s NBT in the second quarter of 2008 was $12.4 million, down 1% compared with $12.5 million in the second quarter of 2007. Business segment NBT was slightly down due to an increase in safety and insurance costs, partially offset by better operating performance. Business segment NBT as a percentage of operating revenue was 8.8% in the second quarter of 2008, down 30 basis points compared with 9.1% in the year-earlier period due to an increase in pass through fuel costs.

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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 second quarter of 2008, CSS costs were $45.1 million, down from $48.2 million in the year-earlier period largely because the prior year included a charge of $1.8 million related to an adjustment in the amortization period of restricted stock units.

Income Taxes

     The Company’s effective income tax rate for the second quarter of 2008 was 44.1% of pre-tax earnings compared with 37.6% in the year-earlier period. The current period income tax rate reflects the adverse impact associated with higher non-deductible foreign losses, primarily in Brazil. The prior period income tax rate reflects a benefit of $1.3 million (1.2% of pre-tax earnings) from the impact of income tax changes in the State of New York.

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.

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     Capital expenditures were $639.0 million for the first half of 2008, compared with $788.1 million in the same period of 2007. The decrease in capital expenditures reflects lower lease vehicle spending for expansion of customer fleets, increased lease term extensions, and planned lower rental fleet purchases. Net capital expenditures (including proceeds from the sale of assets) were $496.1 million, up from $442.7 million in the same period of 2007. In the prior year, net capital expenditures included the impact of a $150.3 million sale-leaseback transaction.

     The Company anticipates full-year 2008 capital expenditures to be approximately $1.28 billion, up from $1.19 billion in 2007. The current capital expenditure forecast represents a decrease of approximately $160 million from the Company’s previous forecast of approximately $1.44 billion, due to lower lease spending, partially offset by modestly higher commercial rental spending.

Free Cash Flow and Leverage

     Operating cash flow through June 30, 2008, was $522.5 million, up 3% from $505.2 million in the same period of 2007. Total cash generated (including proceeds from used vehicle sales) through June 30, 2008, was $697.6 million, down 21% from $883.2 million in the same period of 2007, primarily due to the impact of the previously discussed sale leaseback in 2007. Free cash flow through June 30, 2008, was $88.6 million compared with negative $2.0 million for the same period of 2007, primarily due to lower net cash paid for capital expenditures. On a full-year basis, the Company’s free cash flow forecast is $300 million, up from a previous forecast of approximately $200 million, due to lower net cash paid for capital expenditures.

     Balance sheet debt as of June 30, 2008, increased by $214.1 million compared with year-end 2007, due primarily to acquisitions and stock repurchases. The leverage ratio for balance sheet debt as of June 30, 2008, was 162%, compared with 147% at year-end 2007. Total obligations to equity as of June 30, 2008, were 171%, up from 157% at year-end 2007. The full-year forecast for total obligations to equity is 170%, up from a previous forecast of 158%. This projection includes the impact of all completed acquisitions, to date. 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.

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Outlook

     Commenting on Ryder’s outlook, Mr. Swienton said, “We continue to monitor and adjust to the effects of a number of outside factors. These are related primarily to the general economy, strikes, and known temporary automotive plant shutdowns. Based on the capabilities of our improved business model, including the very strong performance of our Fleet Management Solutions business segment, we are still forecasting solid earnings results despite these conditions. We expect to realize good contractual revenue growth and to continue to execute on our financial leverage objectives.

     We are holding our full-year 2008 earnings forecast to a narrowed range of $4.60 to $4.70 per share, from the prior range of $4.55 to $4.75. Additionally, we are forecasting third quarter EPS to be in the range of $1.25 to $1.30.”

About Ryder

     Ryder provides leading-edge transportation, logistics and supply chain management solutions worldwide. Ryder’s stock (NYSE: R) is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. Ryder ranks 371^st on the FORTUNE 500^® and 1,631^st 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, unexpected reserves or write-offs due to the deterioration of the credit worthiness or bankruptcy of customers, 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 economic and 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, reserves and accruals particularly with respect to pension, taxes, insurance and revenue, additional adverse issues or developments in our Brazilian operations, changes in general economic conditions, sudden or unusual 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, our ability to create and benefit from synergies and operational improvements from recent FMS acquisitions, 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.

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     Note Regarding Non-GAAP Financial Measures: This news release includes certain non-GAAP financial measures as defined under SEC rules. Additional information regarding non-GAAP financial measures can be found in our investor presentation for the quarter and in our reports filed with the SEC, which are available in the Investors area of our website at www.ryder.com.

Conference Call and Webcast Information:
Ryder’s earnings conference call and webcast is scheduled for Wednesday, July 23, 2008, 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 Robert Sanchez.

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: RG2223010 and Passcode: RYDER.
Þ	To access audio replays of the conference and view a presentation of Ryder’s earnings results: Dial 1-866-516-0667 (outside U.S. dial 1-203-369-2031), then view the presentation by visiting the Investors area of Ryder’s website at http://investors.ryder.com. A podcast of the call will also be available online within 24 hours after the end of the call at http://investors.ryder.com.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS — UNAUDITED
Periods ended June 30, 2008 and 2007
(In millions, except per share amounts)

	Three Months						Six Months
	2008			2007			2008			2007
Revenue	$	1,660.2			1,658.0		$	3,203.8			3,252.1
Operating expense		843.2			701.4			1,606.9			1,368.6
Salaries and employee-related costs		354.0			344.7			712.4			698.9
Subcontracted transportation		93.7			257.0			169.0			504.2
Depreciation expense		209.3			202.3			415.2			398.5
Gains on vehicle sales, net		(10.2	)		(13.5	)		(22.6	)		(28.6	)
Equipment rental		20.3			22.3			41.8			42.8
Interest expense		37.6			40.8			75.0			80.2
Miscellaneous (income) expense, net		(0.3	)		(2.5	)		1.3			(3.4	)
Restructuring and other charges, net		—			1.2			—			1.7
		1,547.6			1,553.7			2,999.0			3,062.9
Earnings before income taxes		112.7			104.3			204.8			189.2
Provision for income taxes		(49.8	)		(39.2	)		(85.8	)		(72.8	)
Net earnings	$	62.9			65.1		$	119.0			116.4
Earnings per common share — Diluted:	$	1.10			1.07		$	2.06			1.90
Weighted-average shares outstanding — Diluted:		57.3			61.1			57.7			61.1

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

RYDER SYSTEM, INC. AND SUBSIDIARIES

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

	(unaudited)
	June 30,		December 31,
	2008		2007
Assets:
Cash and cash equivalents	$	107.4		116.5
Other current assets		1,037.9		1,105.6
Revenue earning equipment, net		4,678.7		4,501.4
Operating property and equipment, net		554.6		518.7
Other assets		689.8		612.4
	$	7,068.4		6,854.6
Liabilities and shareholders’ equity:
Short-term debt/current portion of long-term debt	$	269.1		222.7
Other current liabilities		754.4		796.7
Long-term debt		2,721.1		2,553.4
Other non-current liabilities (including deferred income taxes)		1,472.9		1,394.2
Shareholders’ equity		1,850.9		1,887.6
	$	7,068.4		6,854.6

SELECTED KEY RATIOS

	June 30,			December 31,
	2008			2007
Debt to equity		162	%		147	%
Total obligations to equity (a) *		171	%		157	%

	Twelve months ended June 30,
	2008			2007
Return on average shareholders’ equity		13.9	%		14.4	%
Return on average assets		3.7	%		3.6	%
Return on capital*		7.4	%		7.6	%

(a)	Total obligations represent debt plus off-balance sheet equipment obligations.
*	Non-GAAP financial measure; see reconciliation to closest GAAP financial measure included within this release.

RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT REVENUE AND EARNINGS — UNAUDITED
Periods ended June 30, 2008 and 2007
(Dollars in millions)

	Three Months							Six Months
	2008			2007			B(W)	2008			2007			B(W)
Revenue:
Fleet Management Solutions:
Full service lease	$	516.1			489.2		5%	$	1,020.3			965.2		6%
Contract maintenance		41.9			40.0		5%		82.5			77.2		7%
Contractual revenue		558.0			529.2		5%		1,102.8			1,042.4		6%
Contract-related maintenance		50.1			50.1		0%		101.8			102.2		(0)%
Commercial rental		146.6			145.3		1%		279.3			276.3		1%
Other		21.6			17.6		23%		40.0			35.2		13%
Fuel		425.0			295.1		44%		783.1			569.3		38%
Total Fleet Management Solutions		1,201.3			1,037.3		16%		2,307.0			2,025.4		14%
Supply Chain Solutions		440.9			584.0		(25)%		855.1			1,150.4		(26)%
Dedicated Contract Carriage		143.7			141.1		2%		280.9			279.6		0%
Eliminations		(125.7	)		(104.4	)	(20)%		(239.2	)		(203.3	)	(18)%
Total revenue	$	1,660.2			1,658.0		0%	$	3,203.8			3,252.1		(1)%
Operating Revenue: *
Fleet Management Solutions	$	776.3			742.2		5%	$	1,523.9			1,456.1		5%
Supply Chain Solutions		349.7			330.0		6%		691.7			652.1		6%
Dedicated Contract Carriage		141.3			138.1		2%		275.3			273.7		1%
Eliminations		(51.4	)		(53.2	)	4%		(102.7	)		(105.6	)	3%
Total operating revenue	$	1,215.9			1,157.1		5%	$	2,388.2			2,276.3		5%
Business segment earnings:
Earnings before income taxes:
Fleet Management Solutions	$	115.8			97.5		19%	$	207.2			178.3		16%
Supply Chain Solutions		6.8			15.5		(56)%		15.1			26.9		(44)%
Dedicated Contract Carriage		12.4			12.5		(1)%		23.7			22.9		4%
Eliminations		(7.7	)		(8.0	)	3%		(15.1	)		(16.9	)	10%
		127.3			117.5		8%		230.9			211.2		9%
Unallocated Central Support Services		(8.1	)		(12.0	)	33%		(19.7	)		(20.3	)	3%
Earnings before restructuring and
other charges, net and income taxes		119.2			105.5		13%		211.2			190.9		11%
Restructuring and other charges, net and Brazil charges		(6.5	)		(1.2	)	NA		(6.5	)		(1.7	)	NA
Earnings before income taxes		112.7			104.3		8%		204.8			189.2		8%
Provision for income taxes		(49.8	)		(39.2	)	(27)%		(85.8	)		(72.8	)	(18)%
Net earnings	$	62.9			65.1		(3)%	$	119.0			116.4		2%

* Non-GAAP financial measure

Note: Amounts may not recalculate due to rounding.

RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION — UNAUDITED
Periods ended June 30, 2008 and 2007
(Dollars in millions)

	Three Months							Six Months
	2008			2007			B(W)	2008			2007			B(W)
Fleet Management Solutions
Total revenue	$	1,201.3			1,037.3		16%	$	2,307.0			2,025.4		14%
Fuel revenue		(425.0	)		(295.1	)	44%		(783.1	)		(569.3	)	38%
Operating revenue *	$	776.3			742.2		5%	$	1,523.9			1,456.1		5%
Segment earnings before income taxes	$	115.8			97.5		19%	$	207.2			178.3		16%
Earnings before income taxes as % of total revenue		9.6	%		9.4	%			9.0	%		8.8	%
Earnings before income taxes as % of operating revenue *		14.9	%		13.1	%			13.6	%		12.2	%
Supply Chain Solutions
Total revenue	$	440.9			584.0		(25%)	$	855.1			1,150.4		(26%)
Subcontracted transportation		(91.2	)		(254.0	)	(64%)		(163.4	)		(498.3	)	(67%)
Operating revenue *	$	349.7			330.0		6%	$	691.7			652.1		6%
Segment earnings before income taxes	$	6.8			15.5		(56%)	$	15.1			26.9		(44%)
Earnings before income taxes as % of total revenue		1.5	%		2.6	%			1.8	%		2.3	%
Earnings before income taxes as % of operating revenue *		1.9	%		4.7	%			2.2	%		4.1	%
Memo: Fuel costs	$	47.2			31.3		(51%)	$	87.7			59.2		(48%)
Dedicated Contract Carriage
Total revenue	$	143.7			141.1		2%	$	280.9			279.6		0%
Subcontracted transportation		(2.4	)		(3.0	)	(17%)		(5.6	)		(5.9	)	(4%)
Operating revenue *	$	141.3			138.1		2%	$	275.3			273.7		1%
Segment earnings before income taxes	$	12.4			12.5		(1%)	$	23.7			22.9		4%
Earnings before income taxes as % of total revenue		8.6	%		8.9	%			8.4	%		8.2	%
Earnings before income taxes as % of operating revenue *		8.8	%		9.1	%			8.6	%		8.4	%
Memo: Fuel costs	$	36.5			26.5		(37%)	$	67.2			51.2		(31%)

* Non-GAAP financial measure

Note: Amounts may not recalculate due to rounding.

RYDER SYSTEM, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS — PRELIMINARY AND UNAUDITED
(In millions)

OPERATING REVENUE RECONCILIATION	Three months						Six months
	2008			2007			2008			2007
Total revenue	$	1,660.2			1,658.0		$	3,203.8			3,252.1
Fuel services and subcontracted transportation revenue		(518.7	)		(552.1	)		(952.1	)		(1,073.5	)
Fuel eliminations		74.4			51.2			136.5			97.7
Operating revenue *	$	1,215.9			1,157.1		$	2,388.2			2,276.3

CASH FLOW RECONCILIATION	Six months ended June 30,
	2008			2007
Net cash provided by operating activities	$	522.5			505.2
Proceeds from sales (primarily revenue earning equipment)		142.9			195.1
Proceeds from sale & leaseback of assets		—			150.3
Collections on direct finance leases		31.9			31.8
Other, net		0.3			0.8
Total cash generated *		697.6			883.2
Capital expenditures		(609.0	)		(885.2	)
Free cash flow *	$	88.6			(2.0	)

SCS REVENUE RECONCILIATION	Three months ended June 30,							Six months ended June 30,
	2008		2007		B(W)			2008		2007		B(W)
Total SCS revenue	$	440.9		584.0		(25	%)	$	855.1		1,150.4		(26	%)
Customer contract modification		—		179.3		(100	)		—		354.1		(100	)
Adjusted total SCS revenue*	$	440.9		404.7		9	%	$	855.1		796.3		7	%

DEBT TO EQUITY RECONCILIATION	June 30,					December 31,
	2008		% to Equity			2007		% to Equity
On-balance sheet debt	$	2,990.2		162	%	$	2,776.1		147	%
Off-balance sheet debt — PV of minimum lease payments and guaranteed residual values under operating leases for vehicles (a)		168.7					178.0
Total obligations *	$	3,158.9		171	%	$	2,954.1		157	%

NET EARNINGS AND EPS RECONCILIATION	Three Months				Six Months
	2008 Net Earnings		2008 EPS		2008 Net Earnings		2008 EPS
Net earnings	$	62.9		1.10	$	119.0		2.06
Brazil charges		6.8		0.12		6.8		0.12
Net earnings excluding Brazil charges	$	69.8		1.22	$	125.9		2.18

Note: The Brazil charges many not recalculate on an individual basis due to rounding.

RETURN ON CAPITAL RECONCILIATION			Twelve months ended June 30,
			2008			2007
Net earnings (12-month rolling period)			$	256.5			247.5
	+	Restructuring and other charges, net and other items		8.0			—
	+	Income taxes		164.5			150.9
		Adjusted earnings before income taxes		429.0			398.4
	+	Adjusted interest expense (b)		165.3			160.4
	–	Adjusted income taxes (c)		(234.3	)		(211.7	)
	=	Adjusted net earnings for ROC (numerator)	$	360.0			347.1
Average total debt			$	2,833.4			2,755.5
	+	Average off-balance sheet debt		183.6			97.7
	+	Average adjusted total shareholders’ equity (d)		1,844.6			1,711.6
	=	Adjusted average total capital (denominator)	$	4,861.6			4,564.8
Adjusted ROC *				7.4	%		7.6	%

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.
(d)	Represents shareholders’ equity adjusted for accounting changes and tax benefits in those periods.
*	Non-GAAP financial measure
	Certain prior period amounts have been reclassified to conform to current year presentation.

EX-99.2

Second Quarter 2008 Earnings Conference Call July 23, 2008

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, unexpected reserves or write-offs due to the deterioration of the credit worthiness or bankruptcy of customers, 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 economic and 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, reserve and accruals particularly with respect to pension, taxes, insurance and revenue, additional adverse issues or developments in our Brazilian operations, changes in general economic conditions, sudden or unusual 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 Second Quarter 2008 Results Overview Asset Management Update Earnings Outlook Q & A

2nd Quarter Results Overview Earnings per diluted share were $1.10 versus $1.07 in 2Q07 2Q08 included $0.12 charge for Brazil adjustments related to prior years Comparable earnings were $1.22 versus $1.07 in 2Q07 Comparable earnings above forecast of $1.10 - $1.20 due primarily to FMS contractual revenue growth, partially offset by lower SCS results Total revenue remained unchanged vs. prior year, reflecting a change from gross to net revenue reporting for a supply chain subcontracted transportation customer Operating revenue up 5% vs. prior year as a result of FMS contractual revenue growth including acquisitions, higher fuel prices and favorable foreign exchange rate movements Fleet Management Solutions (FMS) total revenue up 16% (and operating revenue up 5%) vs. prior year Contractual revenue increased 5% Full service lease revenue grew 5% including acquisitions Contract maintenance revenue grew 5% organically Commercial rental revenue up 1% Fuel revenue grew 44% Foreign exchange impact accounts for 1 percentage point of total revenue growth FMS net before tax earnings (NBT) up 19% FMS NBT percent of operating revenue up 180 basis points to 14.9% FMS earnings benefited primarily from improved contractual business performance, and to a lesser extent from higher fuel margins (due to unusually rapid increase in fuel prices) and acquisitions

2nd Quarter Results Overview (cont'd) Supply Chain Solutions (SCS) total revenue down 25% vs. prior year due to change from gross to net revenue reporting for a supply chain subcontracted transportation customer SCS operating revenue up 6% vs. prior year, reflecting foreign exchange impact, higher fuel costs and new/expanded business SCS net before tax earnings (NBT) down 56% SCS NBT percent of operating revenue down 280 basis points to 1.9% SCS earnings negatively impacted by lower operating results in our Brazilian operations and several North American automotive strikes Dedicated Contract Carriage (DCC) total revenue up 2% (and operating revenue up 2%) vs. prior year due to higher fuel costs, partially offset by non-renewed contracts DCC net before tax earnings (NBT) down 1% DCC NBT percent of operating revenue down 30 basis points to 8.8% DCC earnings negatively impacted by higher safety/insurance costs, partially offset by improved operating performance

Key Financial Statistics Second Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable earnings per share exclude Brazil charges of $0.12 related to prior years. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenue net of related intersegment billings, which is directly impacted by fluctuations in market fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of steady market fuel prices. Subcontracted transportation revenue is excluded from the operating revenue computation as it is typically a pass through to customers and the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation. Operating revenue is also used to measure segment performance. (3) Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis. ($ Millions, Except Per Share Amounts)

Key Financial Statistics Year-to-Date (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable earnings per share exclude Brazil charges of $0.12 related to prior years. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenue net of related intersegment billings, which is directly impacted by fluctuations in market fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of steady market fuel prices. Subcontracted transportation revenue is excluded from the operating revenue computation as it is typically a pass through to customers and the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation. Operating revenue is also used to measure segment performance. (3) Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis. ($ Millions, Except Per Share Amounts)

Business Segment Second Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable net earnings exclude Brazil charges of $6.8 million related to prior years. (2) Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis. (3) Our primary measure of segment financial performance excludes restructuring and other charges, net and the 2008 Brazil charges related to prior years. The applicable portion of the restructuring and other charges, net that related to each segment was as follows: SCS - ($6.5) in 2008; FMS - ($1.2) in 2007. ($ Millions)

Business Segment Year-to-Date (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable net earnings exclude Brazil charges of $6.8 million related to prior years. (2) Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis. (3) Our primary measure of segment financial performance excludes restructuring and other charges, net and the 2008 Brazil charges related to prior years. The applicable portion of the restructuring and other charges, net that related to each segment was as follows: SCS - ($6.5) in 2008; FMS - ($1.5) and SCS - ($0.2) in 2007. ($ Millions)

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 (3) Free Cash Flow excludes acquisitions and changes in restricted cash Year-to-Date ($ Millions)

Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $147 million as of 6/30/08, $148 million as of 12/31/07 and $185 million as of 6/30/07. (1) Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed residual values under operating leases of $169 million as of 6/30/08, $178 million at 12/31/07 and $196 million at 6/30/07. (2) Represents long term total obligations to equity target of 250 - 300% while maintaining a strong investment grade rating. (1) (2) ($ Millions)

Financial Indicators Forecast (1) (1) Obligations to Equity and Assets Under Management include acquisitions. Free Cash Flow and 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. Significant and predictable cash generation Invest in growth (organic, acquisitions) Increase assets under management Increase financial leverage towards target Free Cash Flow 1054 835 949 1091 1381 1183 1255 1692 1550 Total Cash Generated (2) 2000 2001 2002 2003 2004 2005 2008 Forecast 2006 2007 Gross Capital Expenditures Free Cash Flow Revenue Earning Equipment 1164 530 471 679 1105 1334 1688 1119 1160 PP&E/Other 125 127 129 46 60 77 71 76 120 $1,289 $600 $725 $1,165 $657 $1,411 $1,195 2000 2001 2002 2003 2004 2005 2008 Forecast Memo: Free Cash Flow (2) 131 367 357 289 (216)(3) 375 (242) PP&E/Other $1,760 2006 (440) 2007 $1,280 300 Total Obligations to Equity Ratio (2) Free Cash Flow Total Obligations 3450 2885 2233 1969 1944 2302 2895 2954 3121 Equity 1253 1231 1108 1344 1510 1527 1721 1888 1832 2000 2001 2002 2003 2004 2006 2008 Forecast Memo: Assets Under Management 6,928 6,626 6,751 7,301 7,534 8,053 7,030 275% 201% 146% 129% 234% 151% 157% Total Obligations (2) 2005 168% 8,141 2007 170% 8,425 ($ Millions)

Contents Second Quarter 2008 Results Overview Asset Management Update Earnings Outlook Q & A

Asset Management Update (1) (1) All information presented on this page only is for the U.S. fleet and excludes Canadian and U.K. operations (units rounded to nearest hundred). (2) Vehicles no longer earning revenue definition revised in 1Q08 to include all units held for sale and all units that have not earned revenue in 30 days. Units held for sale were 4,600 at quarter end; down 14% from 5,300 units held for sale at the end of the prior quarter Units held for sale were down 56% from 10,400 in the prior year The number of used vehicles sold in the second quarter was 4,400, down 32% compared with prior year as a result of fewer vehicles in inventory Proceeds per unit for tractors and trucks were up 8% and down 11%, respectively, in the second quarter compared with prior year Vehicles no longer earning revenue were 5,500 at quarter end; down 6,500 from the prior year (2) Vehicles no longer earning revenue were down 1,000 vs. the end of the prior quarter, driven primarily by a lower used truck center inventory Average second quarter total commercial rental fleet was down 6% year-over-year

Contents Second Quarter 2008 Results Overview Asset Management Update Earnings Outlook Q & A

EPS Forecast (1) Non-GAAP financial measure. 2008 comparable EPS excludes Brazil charges related to prior years of $0.12. 2007 Comparable EPS excludes impact from restructuring costs in the third and fourth quarters, property gain in the third quarter and the fourth quarter tax law changes totaling a $0.03 benefit. ($ Earnings Per Share) Narrowing full year 2008 forecast range from $4.55-$4.75 to $4.60-$4.70 Current forecast 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) Second Quarter ($ Millions) (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 rapid changes in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs.

Fleet Management Solutions (FMS) Year-to-Date ($ Millions) (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 rapid changes in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs.

Supply Chain Solutions (SCS) Second 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 typically a pass-through to customers, the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation. Operating revenue is also used to measure segment performance. ($ Millions)

Supply Chain Solutions (SCS) Year-to-Date (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 typically a pass-through to customers, the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation. Operating revenue is also used to measure segment performance. ($ Millions)

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

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

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

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

Balance Sheet ($ Millions)

Asset Management Update (a) (a) U.S. only (b) Excludes early terminations where customer purchases vehicle (b) Redeployments Extensions Early Terminations Early Replacements 2QYTD 03 2895 2444 2684 465 2QYTD 04 2977 1544 2759 577 2QYTD 05 1959 1728 2341 883 2QYTD 06 2037 1985 1952 739 2QYTD 07 2102 1800 2379 1367 2QYTD 08 2252 2789 2307 607

Assets Under Management (a) (a) Assets under management represent the original cost of all vehicles owned and held under lease by Ryder. ($ Millions)

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: Non-GAAP Financial Measure Comparable GAAP Measure Reconciliation & Additional Information Presented on Slide Titled Page Operating Revenue Total Revenue Key Financial Statistics 6 Earnings Before Restructuring and Income Taxes Net Earnings Business Segment 8 Comparable Earnings Per Share (EPS) Earnings Per Share (EPS) Net Earnings and EPS Reconciliation 32 Comparable EPS Forecast EPS Forecast EPS Forecast 17 Comparable Net Earnings / EPS Net Earnings / EPS EPS and Net Earnings Reconciliation 32 Adjusted Return on Capital Net Earnings Adjusted Return on Capital Reconciliation 33 Total Cash Generated / Free Cash Flow Cash Provided by Operating Activities Cash Flow Reconciliation 34 Total Obligations / Total Obligations to Equity Balance Sheet Debt / Debt to Equity Debt to Equity Ratio Debt to Equity Reconciliation 12 36 FMS / SCS / DCC Operating Revenue and Segment NBT as % of Operating Revenue FMS / SCS / DCC Total Revenue and Segment NBT as % of Total Revenue Fleet Management Solutions / Supply Chain Solutions / Dedicated Contract Carriage 20 - 25

EPS and Net Earnings Reconciliation ($ Millions or $ Earnings Per Share) Note: The Brazil charges may not recalculate on an individual basis due to rounding.

Adjusted Return on Capital Reconciliation (1) Earnings calculated based on a 12-month rolling period excluding comparable earning items during the 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 the fourth quarter of 2007. (4) Represents shareholders' equity adjusted for 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. ($ 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, sale and leaseback of revenue earning 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. (5) Free Cash Flow excludes acquisitions and changes in restricted cash. ($ 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, sale and leaseback of revenue earning 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) Free Cash Flow excludes acquisitions and changes in restricted cash. ($ 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)