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 4, 2009

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))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition
	Item 9.01(d) Exhibits
SIGNATURE
EX-99.1
EX-99.2

Item 2.02 Results of Operations and Financial Condition

On February 4, 2009, we issued a press release reporting our financial results for the three and twelve months ended December 31, 2008 (the “Press Release”). We also hosted a conference call and webcast on February 4, 2009 during which we made a presentation on our financial results for the three and twelve months ended December 31, 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 (1) comparable net earnings and comparable earnings per share for both fourth quarter and full year 2008, (2) comparable effective income tax rate for the fourth quarter 2008, (3) comparable earnings per share forecast for first quarter and full year 2009, 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, earnings per share forecast and comparable effective tax rate, as applicable, (1) fourth quarter 2008 restructuring and other charges and expected 2009 restructuring and other charges related to previously announced strategic initiatives and workforce reduction, (2) fourth quarter 2008 reversal of reserves related to uncertain tax positions, (3) fourth quarter 2008 international asset impairments and write-offs, (4) third quarter 2008 net tax benefit from tax law changes, and (5) the impact of charges in the second quarter 2008 for prior years’ adjustments associated with our Brazilian Supply Chain Solutions operation, all of which are 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 4, 2009, relating to Ryder System, Inc.’s financial results for the three and twelve months ended December 31, 2008.
Exhibit 99.2	Presentation prepared for a conference call and webcast held on February 4, 2009, relating to Ryder System, Inc.’s financial results for the three and twelve months ended December 31, 2008.

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 4, 2009	RYDER SYSTEM, INC. (Registrant)
	By:	/s/ Robert E. Sanchez
		Robert E. Sanchez, Executive Vice
		President and Chief Financial Officer

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 2008
RESULTS AND PROVIDES 2009 FORECAST

• Q4 EPS of $0.19 Include Restructuring and Other Charges of $0.90

• Q4 Comparable EPS of $1.09 vs. $1.18 in 2007; Within Forecast Range

• Q4 Revenue Declines 18%; Operating Revenue Decreases 7%

• Full-Year EPS of $3.52 Include Restructuring and Other Charges of $0.97

• Full-Year Comparable EPS of $4.49 Increase from $4.21 in 2007

• Full-Year Revenue Decreases 6%; Operating Revenue Increases 1%

• 2009 Comparable EPS Forecast of $2.70 to $3.40, Excludes $0.10 Carry-Over Restructuring Charge

• Pension Expense Increase of $0.69 Per Share Included in 2009 EPS Forecast

     MIAMI, February 4, 2009 — Ryder System, Inc. (NYSE: R), a leader in transportation and supply chain management solutions, today reported earnings per diluted share (EPS) were $0.19 for the three-month period ended December 31, 2008, compared with EPS of $1.24 in the year-earlier period. Net earnings for the fourth quarter were $10.6 million, compared with $71.9 million in the year-earlier period. EPS and net earnings in the current period included a charge of $0.90 and $49.7 million, respectively, related primarily to restructuring and other items partially offset by the reversal of contingent income tax accruals. EPS and net earnings in the year-earlier period included a benefit of $0.06 and $3.6 million, respectively, related primarily to changes in Canadian income tax laws. Excluding these items, EPS were down 8% to $1.09 and net earnings were down 12% to $60.3 million.

     Revenue for the fourth quarter of 2008 was $1.37 billion, down 18% from $1.67 billion in the comparable period last year. 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. Revenue comparisons were also adversely impacted by declining fuel prices and unfavorable foreign exchange rate movements related to international operations. Operating revenue (revenue excluding Fleet Management Solutions fuel and all subcontracted transportation) was $1.11 billion, down 7% compared with $1.19 billion in the

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year-earlier period. Unfavorable foreign exchange rates impacted operating revenue by 5%. Fleet Management Solutions (FMS) business segment revenue decreased 10% due primarily to lower fuel services revenue. FMS operating revenue declined 4% due to unfavorable foreign exchange rate movements and lower commercial rental revenue, which more than offset contractual revenue growth. Supply Chain Solutions (SCS) business segment revenue declined 35% largely due to a previously announced change from gross to net reporting, as noted above. SCS operating revenue declined 13% due primarily to lower automotive volumes and unfavorable foreign exchange rate movements. Dedicated Contract Carriage (DCC) business segment revenue and operating revenue decreased 13% and 12%, respectively, due to the impact of the non-renewal of certain customer contracts, lower volumes, and the pass through of lower fuel costs.

     Ryder Chairman and Chief Executive Officer Greg Swienton commented, “We delivered full-year comparable earnings growth, operating revenue growth, and positive free cash flow, following more than two full years of a U.S. freight recession, which began in the third quarter of 2006. We also successfully completed four accretive acquisitions in 2008. We are pleased that we delivered fourth quarter earnings within our previous forecast range. In the quarter, we saw significant deterioration in general economic conditions, particularly affecting our transactional commercial rental business. This more than offset continuing strength in our contractual FMS business, which grew by 4% in the quarter, adjusted for foreign exchange. In addition to the steps we took throughout the year to adjust the size of the commercial rental fleet, we announced aggressive strategic actions in the quarter to better position us for the market conditions we anticipate in the coming year.”

Full-Year 2008 Results

     Revenue for the full-year 2008 was $6.20 billion, a decrease of 6% from $6.57 billion in the comparable period of 2007. Operating revenue (revenue excluding FMS fuel and all subcontracted transportation) of $4.70 billion was up 1% from $4.64 billion in the same period of 2007. Net earnings were $199.9 million compared with $253.9 million in the year-earlier period. EPS were $3.52 compared with $4.24 in the same period of 2007. Comparable net earnings were $254.8 million, up 1% from $251.9 million in 2007. Comparable EPS of $4.49 were up 7% from $4.21 in 2007. Comparable earnings and EPS exclude: second quarter 2008

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charges in the Company’s SCS operations in Brazil to adjust accruals and tax deferrals related to prior years; net restructuring and other items recognized in the fourth quarter of 2008 and the third quarter of 2007; and income tax benefits associated with tax law changes in both years and reversals of contingent tax accruals in 2008.

     Operating cash flow for the full-year 2008 was $1.26 billion, up 14% from $1.10 billion in 2007. Total cash generated (including proceeds from used vehicle sales) for the full-year 2008, was $1.58 billion, down 6% from $1.69 billion in 2007, primarily due to proceeds of $150 million from a sale leaseback transaction completed in 2007. Free cash flow in 2008 was $348.9 million, compared with $374.6 million in 2007.

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 items.

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 2008 was $976.3 million, down 10% compared with the year-earlier period. Fuel services revenue decreased 25% compared with the same period in 2007, due to lower fuel prices and reduced volume. Operating revenue (revenue excluding fuel) was $736.7 million, down 4% compared with $764.8 million in the year-earlier period. Both FMS revenue and operating revenue included an unfavorable foreign exchange impact of 4%. Full service lease revenue was flat with the year-earlier period reflecting an increase of 5% in the North American market, including acquisitions, offset by unfavorable foreign exchange rate movements. Contract maintenance revenue increased 2%, organically, due to new sales activity partially offset by the impact of unfavorable exchange rates. Commercial rental revenue decreased 15% compared with the year-earlier period, due to weak global market demand, lower pricing, and unfavorable foreign exchange impacts.

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     The FMS business segment’s NBT was $86.6 million, down 15% compared with $102.3 million in 2007. This decrease was related primarily to a decline in global commercial rental results partially offset by improved contractual business performance and acquisitions. Commercial rental results were impacted by weak market demand which drove lower utilization and reduced pricing. FMS segment earnings also included an unfavorable foreign exchange impact of 3%. Business segment NBT as a percentage of operating revenue was 11.7%, down 170 basis points compared with 13.4% 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.

     In the SCS business segment, fourth quarter 2008 revenue was $357.2 million, down 35% from $545.8 million in the comparable period of 2007. Revenue declined largely 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, revenue declined 13%. Operating revenue (revenue excluding subcontracted transportation) was $294.8 million, down 13% from $337.2 million in the comparable period a year ago. Operating revenue declined primarily due to lower automotive volumes, and an unfavorable foreign exchange impact of 7%.

     The SCS business segment’s NBT was $15.0 million, down 21% from $18.9 million in the same quarter of 2007, driven by lower international operating results and, to a lesser extent, the impact of lower automotive revenue. This was partially offset by lower compensation costs. Business segment NBT as a percentage of operating revenue was 5.1%, down 50 basis points compared with 5.6% in 2007.

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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 2008 revenue was $126.2 million, down 13% compared with $144.3 million in 2007. Operating revenue (revenue excluding subcontracted transportation) was $123.6 million, down 12% compared with $140.3 million in the year-earlier period. Revenue decreased due to the impact of the non-renewal of customer contracts, lower volumes, as well as the pass through of lower fuel costs.

     The DCC business segment’s NBT was $12.7 million, up 4% compared with $12.3 million in 2007. Business segment NBT was positively impacted by better operating margins and improved efficiencies. Business segment NBT as a percentage of operating revenue was 10.3%, up 160 basis points compared with 8.7% 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 2008, CSS costs were $45.3 million, reduced 12% from $51.3 million in the year-earlier period. The improvement in CSS costs primarily reflects lower compensation, and prior-year severance expense. Full-year 2008 CSS costs were $185.5 million, down 3% from $190.5 million in 2007.

Restructuring and Other Items

     Earnings for the fourth quarter 2008 included an after-tax charge of $49.7 million or $0.90 per diluted share related primarily to restructuring and other items, partially offset by the reversal of contingent income tax accruals.

     Pre-tax restructuring and other items totaled $64.0 million ($57.6 million after tax) for the fourth quarter. A pre-tax charge of $37.5 million ($36.0 million after tax) was recognized for

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exit costs associated with a previously announced plan to discontinue current supply chain operations in Brazil, Argentina, Chile, and Europe. The exit costs represent employee-related costs, including severance and other termination benefits, asset impairment charges and contract termination costs. The Company also recognized a pre-tax restructuring charge of $10.7 million ($6.9 million after tax) associated with a previously announced workforce reduction of approximately 700 positions, primarily in the U.S. In addition, as previously announced, the Company recognized a non-cash, pre-tax impairment charge of $10.3 million (also $10.3 million after tax) related to the write-down of goodwill associated with the European Fleet Management Solutions business segment. The Company also recognized a charge of $5.5 million ($4.4 million after tax) for reserves and impairments related to long-term international assets, which had not been previously announced.

     The Company recognized an income tax benefit of $7.9 million associated with the reversal of reserves for uncertain tax positions primarily as a result of expiring statutes of limitation.

Income Taxes

     The Company’s effective income tax rate in the fourth quarter of 2008 was 67.9% of pre-tax earnings compared to 35.6% in the year-earlier period. The current period income tax rate was impacted by non-deductible restructuring and other charges described above. These adverse impacts were partially offset by the reversal of reserves for uncertain tax positions described above. The prior period income tax rate reflects a benefit of $3.3 million (3.0% of pre-tax earnings) primarily for the impact of income tax rate changes in Canada. Excluding these items, the Company’s comparable effective income tax rate was 37.9% of pre-tax comparable earnings versus 38.7% in the year-earlier period.

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.

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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 $1.27 billion for the full-year 2008, compared with $1.20 billion in 2007. The increase in capital expenditures reflects higher spending on contractual full service lease vehicles, partially offset by lower spending on transactional commercial rental vehicles. Net capital expenditures (including proceeds from the sale of assets) were $1.00 billion, up from $671 million in 2007. The increase reflects higher gross capital expenditures of $74 million, prior-year proceeds of $150 million from a sale leaseback transaction, and lower proceeds from used vehicles sales of $109 million.

     The Company completed four acquisitions in 2008. Cash paid for acquisitions totaled $247 million in 2008, compared with $75 million in the prior year.

Balance Sheet and Leverage

     Balance sheet debt as of December 31, 2008 of $2.86 billion, increased by $86.7 million compared with year-end 2007, due primarily to acquisitions and stock repurchases partially offset by free cash flow. Shareholders’ equity of $1.35 billion decreased $542.4 million due to unrecognized pension plan losses and foreign currency translation adjustments. Unrecognized pension plan losses represent the change in the plans’ funded status as a result of market declines in 2008. The leverage ratio for balance sheet debt as of December 31, 2008 was 213%, compared with 147% at year-end 2007. Total obligations to equity as of December 31, 2008 were 225%, up from 157% at year-end 2007. The increase in the Company’s leverage ratios was largely driven by unrecognized pension plan losses, stock repurchases, foreign currency translation adjustments, and acquisitions. 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. However, in the current uncertain environment, the Company has temporarily paused share repurchases and does not expect to reach the higher end of its long-term range.

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2009 Forecast

     Ryder forecasts full-year 2009 earnings to be in the range of $2.60 to $3.30 per diluted share. Comparable full-year 2009 earnings are forecast to be in the range of $2.70 to $3.40 per diluted share, and exclude an anticipated $0.10 per share of additional restructuring costs related to the previously announced restructuring initiatives. Full-year comparable EPS were $4.49 in 2008. The anticipated earnings decline is driven by a significant increase in annual pension expense of $0.69. In addition, we anticipate lower commercial rental and used vehicle sales results, and a negative impact from automotive industry production declines. These items are partially offset by recently announced workforce and other cost reduction initiatives, benefits from acquisitions, and prior share repurchases. The Company is also establishing a first quarter 2009 EPS forecast of $0.40 to $0.50, compared with $0.96 in 2008, primarily due to lower pension expense and stronger market conditions in the prior year.

     Revenue for the full-year 2009 is forecast to be approximately $5.4 billion compared with $6.2 billion in 2008. Operating revenue for the full-year 2009 is forecast to be $4.3 billion compared with $4.7 billion in 2008. Revenue comparisons are adversely impacted by forecasted lower fuel prices and foreign exchange rates. In Fleet Management Solutions, core contractual leasing and maintenance revenue is expected to grow 1%, or up 4% excluding foreign exchange. Commercial rental revenue is forecast to be down by 15%. Supply Chain revenue is forecast to decrease by 22%. SCS operating revenue is anticipated to decrease by 20%, or 13% excluding the impacts of foreign exchange and fuel. Dedicated Contract Carriage revenue is expected to decrease by 8%. DCC operating revenue is expected to decrease 10%, or 4% excluding the impact of fuel.

     Commenting on the Company’s outlook, Mr. Swienton said, “We enter 2009 with a strong balance sheet, a lean, effective organizational structure, and a team that’s well prepared to manage through cyclical impacts of a prolonged recession and market downturn. Our improved business model, including centralized asset management processes, and the coordinated responsiveness of our organization continue to serve us well in tempering the full impact of these unprecedented economic times. Additionally, we took proactive strategic and tactical steps in the fourth quarter to further align our cost structure and resources with what we expect to be a soft economic environment throughout the year. Clearly we face challenging headwinds that are directly related to global economic and market conditions. Chief among them is a significant

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increase in pension expense driven by poor performance in the overall stock market in 2008. In addition, we are experiencing the overall effect of a weak global economy on our transactional commercial rental and used vehicle sales operations, and challenges facing our Supply Chain customers in the automotive industry. Despite these factors, we’re targeting new customer outsourcing opportunities in our contractual product lines, focusing on strong retention of our existing customers, and evaluating additional acquisition opportunities. Our strong balance sheet, good availability of capital, and the free cash flow generated by our business model are of particular value in enabling Ryder to capitalize on opportunities in the current environment. While we are certainly facing a difficult environment in the current period, we believe that our actions will position the Company well for long-term profitable growth in the future.”

     The Company anticipates 2009 capital expenditures to be $940 million; net capital expenditures (including proceeds from sale of assets) are expected to be $685 million. Cash from operations is forecast to be $980 million with total cash generated of $1.30 billion and free cash flow of $365 million in 2009. Total obligations to equity are forecast to decline from 225% at year-end 2008 to approximately 183% at year-end 2009.

About Ryder

     Ryder provides leading-edge transportation, logistics and supply chain management solutions. 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 soft economic conditions, customer acceptance or competition, customer retention levels, unexpected volume declines, automotive plant shutdowns and shift eliminations, 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, the timing and impact of the restructuring activities announced in Q4 2008, 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, a decrease in credit ratings, increased debt costs resulting from volatile financial markets, lack of accretive acquisition opportunities, inability to achieve planned synergies and customer retention levels from acquisitions, 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, changes in general economic conditions, further decline in pension plan returns, sudden or unusual changes in fuel

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prices, availability of qualified drivers, our ability to manage our cost structure, new accounting pronouncements, rules or interpretations, changes in government regulations including regulations regarding vehicle emissions and the risks described in our filings with the Securities and Exchange Commission. The risks included here are not exhaustive. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Note Regarding Non-GAAP Financial Measures: This news release 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, February 4, 2009, 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.

• 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: RH7667649 and Passcode: RYDER.

• To access audio replays of the conference and view a presentation of Ryder’s earnings results: Dial 1-800-754-7906 (outside U.S. dial 1-203-369-3333), 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 December 31, 2008 and 2007
(In millions, except per share amounts)

	Three Months						Year Ended
	2008			2007			2008			2007
Revenue	$	1,373.8			1,666.2		$	6,203.7			6,566.0
Operating expense		618.3			713.7			3,029.6			2,776.9
Salaries and employee-related costs		331.5			363.1			1,399.1			1,410.4
Subcontracted transportation		65.0			212.6			323.4			950.5
Depreciation expense		213.7			209.7			843.5			816.0
Gains on vehicle sales, net		(6.3	)		(7.4	)		(39.3	)		(44.1	)
Equipment rental		19.0			25.4			80.1			93.3
Interest expense		41.6			39.7			157.3			160.1
Miscellaneous (income) expense, net		(0.6	)		(2.1	)		1.7			(15.9	)
Restructuring and other charges (recoveries), net		58.4			(0.3	)		58.4			13.3
		1,340.6			1,554.4			5,853.8			6,160.5
Earnings before income taxes		33.2			111.8			349.9			405.5
Provision for income taxes		(22.6	)		(39.9	)		(150.0	)		(151.6	)
Net earnings	$	10.6			71.9		$	199.9			253.9
Earnings per common share — Diluted	$	0.19			1.24		$	3.52			4.24
Weighted-average shares outstanding — Diluted		55.5			58.1			56.8			59.8

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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,
	2008		2007
Assets:
Cash and cash equivalents	$	120.3		116.5
Other current assets		830.9		1,105.6
Revenue earning equipment, net		4,565.2		4,501.4
Operating property and equipment, net		546.8		518.7
Other assets		626.3		612.4
	$	6,689.5		6,854.6
Liabilities and shareholders’ equity:
Short-term debt / current portion of long-term debt	$	384.3		222.7
Other current liabilities		726.9		796.7
Long-term debt		2,478.5		2,553.4
Other non-current liabilities (including deferred income taxes)		1,754.6		1,394.2
Shareholders’ equity		1,345.2		1,887.6
	$	6,689.5		6,854.6

SELECTED KEY RATIOS

	December 31,			December 31,
	2008			2007
Debt to equity		213	%		147	%
Total obligations to equity (a) *		225	%		157	%

	Twelve months ended December 31,
	2008			2007
Return on average shareholders’ equity		11.2	%		14.2	%
Return on average assets		2.9	%		3.7	%
Return on capital*		7.3	%		7.4	%

(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.

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RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT REVENUE AND EARNINGS — UNAUDITED
Periods ended December 31, 2008 and 2007
(Dollars in millions)

	Three Months									Year Ended
	2008			2007			B(W)			2008			2007			B(W)
Revenue:
Fleet Management Solutions:
Full service lease	$	505.4			503.9			0	%	$	2,042.1			1,965.3			4	%
Contract maintenance		42.2			41.6			2	%		168.1			159.6			5	%
Contractual revenue		547.6			545.5			0	%		2,210.2			2,124.9			4	%
Contract-related maintenance		43.7			48.5			(10	)%		193.9			198.8			(2	)%
Commercial rental		128.7			152.0			(15	)%		557.5			583.3			(4	)%
Other		16.7			18.8			(11	)%		73.1			72.4			1	%
Fuel		239.6			320.6			(25	)%		1,415.3			1,183.2			20	%
Total Fleet Management Solutions		976.3			1,085.4			(10	)%		4,450.0			4,162.6			7	%
Supply Chain Solutions		357.2			545.8			(35	)%		1,643.1			2,250.3			(27	)%
Dedicated Contract Carriage		126.2			144.3			(13	)%		547.8			567.6			(4	)%
Eliminations		(85.9	)		(109.3	)		21	%		(437.2	)		(414.5	)		(5	)%
Total revenue	$	1,373.8			1,666.2			(18	)%	$	6,203.7			6,566.0			(6	)%
Operating Revenue: *
Fleet Management Solutions	$	736.7			764.8			(4	)%	$	3,034.7			2,979.4			2	%
Supply Chain Solutions		294.8			337.2			(13	)%		1,330.7			1,314.5			1	%
Dedicated Contract Carriage		123.6			140.3			(12	)%		536.8			552.9			(3	)%
Eliminations		(45.6	)		(52.7	)		13	%		(197.7	)		(210.2	)		6	%
Total operating revenue	$	1,109.5			1,189.6			(7	)%	$	4,704.5			4,636.6			1	%
Business segment earnings:
Earnings before income taxes:
Fleet Management Solutions	$	86.6			102.3			(15	)%	$	398.5			373.7			7	%
Supply Chain Solutions		15.0			18.9			(21	)%		42.7			63.2			(32	)%
Dedicated Contract Carriage		12.7			12.3			4	%		49.6			47.4			5	%
Eliminations		(8.4	)		(8.1	)		(5	)%		(31.8	)		(31.2	)		(2	)%
		105.9			125.4			(16	)%		459.0			453.1			1	%
Unallocated Central Support Services		(8.7	)		(14.0	)		38	%		(38.7	)		(44.4	)		13	%
Earnings before restructuring and other (charges) / recoveries; net and income taxes		97.2			111.4			(13	)%		420.3			408.7			3	%
Restructuring and other (charges) / recoveries; net and other items		(64.0	)		0.4		NM				(70.4	)		(3.2	)	NM
Earnings before income taxes		33.2			111.8			(70	)%		349.9			405.5			(14	)%
Provision for income taxes		(22.6	)		(39.9	)		43	%		(150.0	)		(151.6	)		1	%
Net earnings	$	10.6			71.9			(85	)%	$	199.9			253.9			(21	)%

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

Page 4

RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION — UNAUDITED
Periods ended December 31, 2008 and 2007
(Dollars in millions)

	Three Months									Year Ended
	2008			2007			B(W)			2008			2007			B(W)
Fleet Management Solutions
Total revenue	$	976.3			1,085.4			(10	%)	$	4,450.0			4,162.6			7	%
Fuel revenue		(239.6	)		(320.6	)		(25	%)		(1,415.3	)		(1,183.2	)		20	%
Operating revenue *	$	736.7			764.8			(4	%)	$	3,034.7			2,979.4			2	%
Segment earnings before income taxes	$	86.6			102.3			(15	%)	$	398.5			373.7			7	%
Earnings before income taxes as % of total revenue		8.9	%		9.4	%					9.0	%		9.0	%
Earnings before income taxes as % of operating revenue *		11.7	%		13.4	%					13.1	%		12.5	%
Supply Chain Solutions
Total revenue	$	357.2			545.8			(35	%)	$	1,643.1			2,250.3			(27	%)
Subcontracted transportation		(62.4	)		(208.6	)		(70	%)		(312.4	)		(935.8	)		(67	%)
Operating revenue *	$	294.8			337.2			(13	%)	$	1,330.7			1,314.5			1	%
Segment earnings before income taxes	$	15.0			18.9			(21	%)	$	42.7			63.2			(32	%)
Earnings before income taxes as % of total revenue		4.2	%		3.5	%					2.6	%		2.8	%
Earnings before income taxes as % of operating revenue *		5.1	%		5.6	%					3.2	%		4.8	%
Memo: Fuel costs	$	22.7			35.6			36	%	$	147.4			124.5			(18	%)
Dedicated Contract Carriage
Total revenue	$	126.2			144.3			(13	%)	$	547.8			567.6			(4	%)
Subcontracted transportation		(2.6	)		(4.0	)		(35	%)		(11.0	)		(14.7	)		(25	%)
Operating revenue *	$	123.6			140.3			(12	%)	$	536.8			552.9			(3	%)
Segment earnings before income taxes	$	12.7			12.3			4	%	$	49.6			47.4			5	%
Earnings before income taxes as % of total revenue		10.1	%		8.5	%					9.1	%		8.4	%
Earnings before income taxes as % of operating revenue *		10.3	%		8.7	%					9.2	%		8.6	%
Memo: Fuel costs	$	22.4			29.3			24	%	$	123.0			107.1			(15	%)

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

Page 4

RYDER SYSTEM, INC. AND SUBSIDIARIES

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

OPERATING REVENUE RECONCILIATION

	Three months						Year Ended
	2008			2007			2008			2007
Total revenue	$	1,373.8			1,666.2		$	6,203.7			6,566.0
Fuel services and subcontracted transportation revenue		(304.6	)		(533.2	)		(1,738.7	)		(2,133.7	)
Fuel eliminations		40.3			56.6			239.5			204.3
Operating revenue *	$	1,109.5			1,189.6		$	4,704.5			4,636.6

CASH FLOW RECONCILIATION

	Year ended December 31,
	2008			2007
Net cash provided by operating activities	$	1,255.7			1,102.9
Proceeds from sales (primarily revenue earning equipment)		264.9			373.6
Proceeds from sale & leaseback of assets		—			150.3
Collections on direct finance leases		61.9			63.4
Other, net		0.5			1.6
Total cash generated *		1,583.0			1,691.8
Capital expenditures		(1,234.1	)		(1,317.2	)
Free cash flow *	$	348.9			374.6

SCS REVENUE RECONCILIATION

	Three months								Year Ended
	2008		2007			B(W)			2008		2007			B(W)
Total SCS revenue	$	357.2		545.8			(35	%)	$	1,643.1		2,250.3			(27	%)
Customer contract modification		—		(133.3	)		(100	%)		—		(640.0	)		(100	%)
Adjusted total SCS revenue*	$	357.2		412.5			(13	%)	$	1,643.1		1,610.3			2	%

DEBT TO EQUITY RECONCILIATION

	December 31,					December 31,
	2008		% to Equity			2007		% to Equity
On-balance sheet debt	$	2,862.8		213	%	$	2,776.1		147	%
Off-balance sheet debt — PV of minimum lease payments and guaranteed residual values under operating leases for vehicles (a)		163.0					178.0
Total obligations *	$	3,025.8		225	%	$	2,954.1		157	%

RETURN ON CAPITAL RECONCILIATION

	Year ended December 31,
	2008			2007
Net earnings (12-month rolling period)	$	199.9			253.9
+ Restructuring and other items		70.5			1.5
+ Income taxes		150.0			151.6
Adjusted earnings before income taxes		420.4			407.0
+ Adjusted interest expense (b)		165.0			169.1
- Adjusted income taxes (c)		(230.5	)		(220.0	)
= Adjusted net earnings for ROC (numerator)	$	354.9			356.1
Average total debt	$	2,881.9			2,847.7
+ Average off-balance sheet debt		170.7			150.1
+ Average adjusted total shareholders’ equity (d)		1,788.1			1,791.7
= Adjusted average total capital (denominator)	$	4,840.7			4,789.5
Adjusted ROC *		7.3	%		7.4	%

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 comparable earnings items.
(d)	Represents shareholders’ equity excluding comparable earnings items for those periods.
*	Non-GAAP financial measure

Note: Amounts may not recalculate due to rounding.

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

Page 5

RYDER SYSTEM, INC. AND SUBSIDIARIES

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

	December 31, 2008
	Three Months									Year Ended
	Reported						Comparable			Reported						Comparable
	Earnings			Adjustments			Earnings			Earnings			Adjustments			Earnings
Revenue	$	1,373.8			—			1,373.8		$	6,203.7			—			6,203.7
Operating expense (exclusive of items shown separately) (a)		618.3			(3.9	)		614.4			3,029.6			(8.8	)		3,020.8
Salaries and employee-related costs		331.5			—			331.5			1,399.1			—			1,399.1
Subcontracted transportation (b)		65.0			—			65.0			323.4			(1.6	)		321.8
Depreciation expense (c)		213.7			(1.6	)		212.1			843.5			(1.6	)		841.9
Gains on vehicle sales, net		(6.3	)		—			(6.3	)		(39.3	)		—			(39.3	)
Equipment rental		19.0			—			19.0			80.1			—			80.1
Interest expense		41.6			—			41.6			157.3			—			157.3
Miscellaneous (income) expense, net		(0.6	)		—			(0.6	)		1.7			—			1.7
Restructuring and other charges, net (d)		58.4			(58.4	)		—			58.4			(58.4	)		—
		1,340.6			(64.0	)		1,276.6			5,853.8			(70.4	)		5,783.4
Earnings before income taxes		33.2			64.0			97.2			349.9			70.4			420.3
Provision for income taxes (e)		(22.6	)		(14.3	)		(36.9	)		(150.0	)		(15.6	)		(165.6	)
Net earnings	$	10.6			49.7			60.3		$	199.9			54.9			254.8
Tax Rate		67.9	%					37.9	%		42.9	%					39.4	%
Weighted-average shares outstanding — Diluted		55.5						55.5			56.8						56.8
Earnings per common share-Diluted	$	0.19					$	1.09		$	3.52					$	4.49

	December 31, 2007
	Three Months									Year Ended
	Reported						Comparable			Reported						Comparable
	Earnings			Adjustments			Earnings			Earnings			Adjustments			Earnings
Revenue	$	1,666.2			—			1,666.2		$	6,566.0			—			6,566.0
Operating expense (exclusive of items shown separately) (a)		713.7			—			713.7			2,776.9			—			2,776.9
Salaries and employee-related costs		363.1			—			363.1			1,410.4			—			1,410.4
Subcontracted transportation		212.6			—			212.6			950.5			—			950.5
Depreciation expense (c)		209.7			—			209.7			816.0			—			816.0
Gains on vehicle sales, net		(7.4	)		—			(7.4	)		(44.1	)		—			(44.1	)
Equipment rental		25.4			—			25.4			93.3			—			93.3
Interest expense		39.7			—			39.7			160.1			—			160.1
Miscellaneous income, net (f)		(2.1	)		0.1			(2.0	)		(15.9	)		10.1			(5.8	)
Restructuring and other (recoveries) charges, net (d)		(0.3	)		0.3			—			13.3			(11.6	)		1.7
		1,554.4			0.4			1,554.8			6,160.5			(1.5	)		6,159.0
Earnings before income taxes		111.8			(0.4	)		111.4			405.5			1.5			407.0
Provision for income taxes (e)		(39.9	)		(3.2	)		(43.1	)		(151.6	)		(3.4	)		(155.0	)
Net earnings	$	71.9			(3.6	)		68.3		$	253.9			(2.0	)		251.9
Tax Rate		35.6	%					38.7	%		37.4	%					38.1	%
Weighted-average shares outstanding — Diluted		58.1						58.1			59.8						59.8
Earnings per common share-Diluted	$	1.24					$	1.18		$	4.24					$	4.21

Notes:

(a)	$3.9 million international asset write-off in the fourth quarter 2008. $4.9 million charge for prior years’ adjustments associated with our Brazilian SCS operation for the year ended 2008.
(b)	$1.6 million charge for prior years’ adjustments associated with our Brazilian SCS operation for the year ended 2008.
(c)	$1.6 million international impairment charge in the fourth quarter 2008.
(d)	$37.5 million of international exit costs in the fourth quarter 2008. $10.7 million workforce reduction in the fourth quarter 2008. $10.3 asset impairment, including goodwill in the fourth quarter 2008. $0.3 million of restructure benefits in the fourth quarter of 2007. $11.6 million of exit costs for the year ended 2007.
(e)	$7.9 million of tax accrual reversals in the fourth quarter 2008. $1.6 million of tax benefits related to tax law changes for the year ended 2008. $3.3 million of tax benefits related to tax law changes for the year ended 2007.
(f)	$0.1 million and $10.1 million gain in the fourth quarter and year ended 2007, respectively, related to the sale of property.

Amounts are calculated independently for each component and may not be additive due to rounding.

Page 6

EX-99.2

EXHIBIT 99.2
 

Fourth Quarter 2008 & 2009 Forecast Earnings Conference Call February 4, 2009

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 soft economic conditions, customer acceptance or competition, customer retention levels, unexpected volume declines, automotive plant shutdowns and shift eliminations, 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, the timing and impact of the restructuring activities announced in Q4 2008, 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, a decrease in credit ratings, increased debt costs resulting from volatile financial markets, lack of accretive acquisition opportunities, inability to achieve planned synergies and customer retention levels from acquisitions, 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, changes in general economic conditions, further decline in pension plan returns, 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 Fourth Quarter 2008 Results Overview Asset Management Update 2009 Forecast Q & A

4th Quarter Results Overview Earnings per diluted share were $0.19 versus $1.24 in 4Q07 4Q08 included a $0.90 charge related to restructuring and other items 4Q07 included a $0.06 benefit related primarily to Canada tax law changes Comparable earnings per share were $1.09 versus $1.18 in 4Q07 Revenue declined 18% vs. prior year, reflecting a change from gross to net revenue reporting for a supply chain subcontracted transportation customer, lower fuel services revenue and unfavorable foreign exchange rate movements Operating revenue down 7% vs. prior year driven by unfavorable foreign exchange rates of 5%, lower commercial rental revenue, lower automotive volumes and lower fuel pass throughs, partially offset by contractual revenue growth including acquisitions

4th Quarter Results Overview Fleet Management Solutions (FMS) total revenue down 10% (and operating revenue down 4%) vs. prior year Contractual revenue remained flat; up 4% excluding foreign exchange Full service lease revenue including acquisitions flat; up 4% excluding foreign exchange Contract maintenance revenue grew 2% organically; up 4% excluding foreign exchange Commercial rental revenue down 15%; down 11% excluding foreign exchange Fuel revenue down 25% due to both price and volume declines FMS net before tax earnings (NBT) down 15% FMS NBT down 12% excluding foreign exchange FMS NBT percent of operating revenue down 170 basis points to 11.7% FMS earnings negatively impacted by commercial rental results and foreign exchange, partially offset by contractual business performance including accretive acquisitions

4th Quarter Results Overview Supply Chain Solutions (SCS) total revenue down 35% vs. prior year due largely to change from gross to net revenue reporting for a supply chain subcontracted transportation customer SCS operating revenue down 13% vs. prior year due to lower automotive volumes and an unfavorable foreign exchange impact of 7% SCS net before tax earnings (NBT) down 21% SCS NBT percent of operating revenue down 50 basis points to 5.1% SCS earnings negatively impacted by lower international operating results and, to a lesser extent, lower automotive revenue partially offset by lower compensation costs Dedicated Contract Carriage (DCC) total revenue down 13% (and operating revenue down 12%) vs. prior year due to non-renewed contracts, lower volumes and lower passed through fuel costs DCC net before tax earnings (NBT) up 4% DCC NBT percent of operating revenue up 160 basis points to 10.3% DCC earnings positively impacted by improved operating margins and efficiencies

Key Financial Statistics Fourth Quarter Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. See page 43 for reconciliation. 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. Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis. Tax rate includes the impact of non-deductible restructuring charges partially offset by reversal of tax reserves. Comparable tax rate would be 37.9% in 2008 vs. 38.7% in 2007, excluding these items. See page 44 for reconciliation. ($ Millions, Except Per Share Amounts) (4)

Key Financial Statistics Full Year Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. See page 43 for reconciliation. 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. Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis. Tax rate includes the impact of non-deductible restructuring charges, tax law changes and the reversal of tax reserves in 2008, and tax law changes in 2007. Comparable tax rate would be 39.4% in 2008 vs. 38.1% in 2007. See page 44 for reconciliation. ($ Millions, Except Per Share Amounts) (4)

Business Segment Fourth Quarter Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. See page 43 for reconciliation Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items. The applicable portion of the restructuring and other charges, net that related to each segment was as follows: FMS - ($16.7), SCS - ($45.3), DCC - ($0.5) and CSS - ($1.5) in 2008; FMS - $0.3 and SCS -$0.1 in 2007. ($ Millions)

Business Segment Full Year Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. See page 43 for reconciliation. Includes impact of net revenue reporting for certain subcontracted transportation revenue previously reported on a gross basis. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items. The applicable portion of the restructuring and other charges, net that related to each segment was as follows: FMS - ($16.7), SCS - ($51.7), DCC - ($0.5) and CSS - ($1.5) in 2008; FMS - $4.5, SCS - ($5.6), DCC - -($1.1) and CSS -($1.0) in 2007. ($ 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 (3) Free Cash Flow excludes acquisitions and changes in restricted cash Full Year ($ Millions)

Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $480 million as of 12/31/08 and $148 million as of 12/31/07. (1) Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed residual values under operating leases of $163 million as of 12/31/08 and $178 million at 12/31/07. (2) Represents long term total obligations to equity target of 250 - 300% while maintaining a strong investment grade rating. (1) (2) ($ Millions)

Contents Fourth Quarter 2008 Results Overview Asset Management Update 2009 Forecast 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 6,300 at quarter end; down 2% from 6,400 units held for sale in the prior year Units held for sale were up 35% from 4,600 at the end of prior quarter The number of used vehicles sold in the fourth quarter was 3,200, down 42% compared with prior year Proceeds per unit were up 5% for tractors and flat for trucks in the fourth quarter compared with prior year Vehicles no longer earning revenue were 7,600 at quarter end; up 200 from the prior year(2) Vehicles no longer earning revenue were up 2,000 vs. the end of the prior quarter predominantly due to an increase in units held for sale Average fourth quarter total commercial rental fleet was down 5% year-over-year

Contents Fourth Quarter 2008 Results Overview Asset Management Update 2009 Forecast Q & A

2009 Overall Environment Baseline Assumptions Opportunities (+) / Risks (-) No 2009 economic recovery anticipated Continuing very weak economy - - additional contraction - - unfavorable comparisons vs. prior year Deeper economic decline Interest rates remain at current level Long term rates decline as credit crisis eases Further rate volatility Assumes current unfavorable FX rates U.S. dollar strengthening (primarily impacts revenue) Positive free cash flow Pension and tax law revisions Additional pension contribution No share repurchase Resume share repurchase program

Baseline Assumptions Opportunities (+) / Risks (-) Slowing contractual net sales Further fleet downsizing Additional acquisitions Lower rental demand with additional pricing decline Further price and demand weakening Stable volume of used vehicle sales with lower pricing Inventory levels modestly up Additional decline in used vehicle pricing and/or volume Maintenance and overhead cost reduction initiatives Additional cost initiatives FMS Assumptions

Baseline Assumptions Opportunities (+) / Risks (-) Lower volumes with existing customers, especially in automotive Potential for further volume declines and automotive plant shutdowns Focus on customer retention and business development Potential for customer contraction and lost business Weak economy drives increased outsourcing Exit underperforming international markets and contracts No significant risks or opportunities Increase penetration of non-automotive segments Acquisitions Increased impact from customer bankruptcies Negative impacts of potential large customer bankruptcies SCS / DCC Assumptions

Key Financial Statistics (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. See page 43 for 2008 reconciliation. 2009 comparable earnings, comparable earnings before income taxes, and EPS excludes $5.5 million, $7 million, and $0.10 restructuring charges related to 2008 initiatives. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenue net of related intersegment billings, which is directly impacted by fluctuations in market fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of steady market fuel prices. Subcontracted transportation revenue is excluded from the operating revenue computation as prior to 2008 it was largely a pass through to customers and the Company realized minimal changes in profitability as a result of fluctuations in subcontracted transportation. (3) 2008 tax rate includes the impact of non-deductible restructuring charges, tax law changes and the reversal of tax reserves. Note: Earnings per share amounts are calculated independently for each component and may not be additive due to rounding. ($ Millions, Except Per Share Amounts) (3)

Business Segment Revenue (1) Includes fuel revenue. (2) Includes full service lease and contract maintenance. (3) Includes subcontracted transportation revenue.

(0.50 - 0.60) 0.40 (0.50 - 0.60) (0.25 - 0.35) (0.11) $4.49 (1) (0.69) 0.08 2009 Causes of EPS Change (1) 2008 Comparable EPS is a non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. See page 43 for reconciliation. 2009 Comparable EPS excludes $0.10 restructuring charges related to 2008 initiatives. ($ Earnings Per Share) 0.13 - 0.53 $2.70 - $3.40 $3.55 - $4.25 (0.05)

Pension Expense ($ Millions) Drivers of the Change in 2009 Consolidated Pension Expense

Business Segment Earnings Full Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 Forecast Midpoint Segment NBT as % of Operating Revenue 5.9 6.7 6 8.7 9 9 9 9 7.3 Segment NBT as % of Total Revenue 7.3 8.2 7.5 11.2 12.4 12.6 12.5 13.1 9.7 EBIT Fleet Management Solutions Supply Chain Solutions Dedicated Contract Carriage 2001 2002 2003 2004 2005 2006 2007 2008 2009 Forecast Midpoint Segment NBT as % of Operating Revenue -0.6 -0.4 2.9 2.7 2.4 3.1 2.8 2.6 2.7 Segment NBT as % of Total Revenue -0.8 -0.6 4.2 4 3.9 5.3 4.8 3.2 3.2 2001 2002 2003 2004 2005 2006 2007 2008 2009 Forecast Midpoint Segment NBT as % of Total Revenue 6.2 6 6.8 5.8 6.5 7.5 8.4 9.1 9.3 Segment NBT as % of Operating Revenue 6.3 6.1 6.9 5.9 6.7 7.8 8.6 9.2 9.6 Segment NBT as % of Total Revenue Segment NBT as % of Operating Revenue (1) (1) 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 prior to 2008 it was largely a pass through to customers and the Company realized minimal changes in profitability as a result of fluctuations in subcontracted transportation.

Capital Expenditures Full Service Lease: Capital for lease vehicles is committed after contracts are signed with customers 2009 lease capital expenditures include: Replacement spending of $780 - $855 million Growth spending of $20 million Growth capital represents an investment which results in $8 million of annual revenue Commercial Rental: No 2009 rental capital expenditures

Capital Expenditures, Cash Flow & Leverage Full Year (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Free Cash Flow excludes acquisitions. Acquisitions totaled $247 million in full year 2008 and $81 million in 2009 year-to-date. ($ Millions)

EPS Forecast (1) Non-GAAP financial measure. Refer to page 43 for 2008 reconciliation. First quarter and full year 2009 comparable EPS excludes $0.03 and $0.10 restructuring charges related to 2008 initiatives. ($ Earnings Per Share) (1) (1)

Summary Manage through adverse impacts of pension plan performance and cyclical impacts in commercial rental and used vehicle sales Utilize cost management and restructuring opportunities Focus on strong customer retention, new business development and sales/marketing initiatives Continue growth (excluding FX) in full service lease and contract maintenance organically and through acquisitions Partially offset impact of lower automotive volumes on supply chain solutions through industry diversification Renew focus on dedicated contract carriage growth opportunities Appropriately manage capital spending and fleet size resulting in strong free cash flow Manage through cyclical impacts of prolonged recession and market downturn, while driving growth from customer outsourcing in contractual product lines

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 ($ 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) Full Year ($ 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) 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 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) Full Year (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) Fourth Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC business segment and as a measure of sales activity. Subcontracted transportation is deducted from total revenue to arrive at operating revenue as subcontracted transportation is 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) Full Year (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) Fourth Quarter ($ Millions)

Central Support Services (CSS) Full Year ($ 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 FY03 4750 4167 4938 967 FY04 4596 3042 5008 1584 FY05 4104 3996 4539 1646 FY06 3572 4360 3839 1890 FY07 4195 4261 4843 1938 FY08 3868 5180 4571 1561 Number of Units

Free Cash Flow Total Obligations 3450 2885 2233 1969 1944 2302 2895 2954 3121 2757 Equity 1253 1231 1108 1344 1510 1527 1721 1888 1832 1506 2000 2001 2002 2003 2004 2006 2009 Forecast Midpoint 275% 201% 146% 129% 234% 151% 157% Total Obligations (2) 2005 168% 2007 225% 2008 Financial Indicators Forecast (1) (1) Obligations to Equity 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 $176 million payment to the IRS related to full resolution of 1998 - 2000 tax period matters. Significant and predictable cash generation Invest in growth (organic, acquisitions) Increase financial leverage towards long term target of 250-300% Total Obligations to Equity Gross Capital Expenditures ($ Millions) Total Cash Generated (2) Free Cash Flow 1054 835 949 1091 1381 1183 1255 1692 1583 1300 2000 2001 2002 2003 2004 2005 2009 Forecast Midpoint 2006 2007 2008 Total Obligations to Equity Ratio (2) Free Cash Flow Revenue Earning Equipment 1164 530 471 679 1105 1334 1688 1119 1269 840 PP&E/Other 125 127 129 46 60 77 71 76 x 100 $1,289 $600 $725 $1,165 $657 $1,411 $1,195 2000 2001 2002 2003 2004 2005 2009 Forecast Midpoint Memo: Free Cash Flow (2) 131 367 357 289 (216)(3) 375 (242) PP&E/Other $1,760 2006 (440) 2007 365 2008 349 $1,269 183% $940

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 7 - 8 Operating Revenue Forecast Total Revenue Forecast Key Financial Statistics 20 Earnings Before Restructuring and Income Taxes Net Earnings Business Segment 9 - 10 Comparable / Earnings EPS Forecast EPS Forecast EPS Forecast 27 Comparable Net Earnings / EPS Net Earnings / EPS EPS and Net Earnings Reconciliation 43 Comparable NBT / Tax Rate NBT / Tax Rate Tax Rate Reconciliation 44 Adjusted Return on Capital / Forecast Net Earnings / Forecast Adjusted Return on Capital Reconciliation 45 Total Cash Generated / Free Cash Flow / Forecast Cash Provided by Operating Activities / Forecast Cash Flow Reconciliation 46 - 47 Total Obligations / Total Obligations to Equity Balance Sheet Debt / Debt to Equity Debt to Equity Ratio Debt to Equity Reconciliation 13 48 - 49 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 31 - 36

EPS and Net Earnings Reconciliation ($ Millions or $ Earnings Per Share) Note: Amounts may not recalculate due to rounding.

Tax Rate Reconciliation Note: NBT represents net before tax earnings 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 excluding comparable earnings 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 comparable earnings items. (4) Represents shareholders' equity excluding comparable earnings items for 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)