Ryder3Q07Final

Third Quarter 2007

October 24, 2007

Earnings Conference Call

2

Safe Harbor

Certain statements and information included in this presentation

are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-

looking statements. Important factors that could cause such differences include, among others, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to customer acceptance or competition, customer retention levels, unexpected volume declines, loss of key customers in the Supply Chain Solutions (SCS) business segment, our failure to successfully implement sales growth initiatives in our Fleet Management Solutions 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, 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.

3

Contents

► Third Quarter 2007 Results Overview► Asset Management Update► Earnings Outlook► Q & A

4

3rd Quarter Results Overview

►

Earnings per diluted share were $1.11 versus $1.06 in 3Q06–

3Q07 included $0.03 net charge for restructuring costs, partially offset by gain on property sale

–

3Q06 included $0.06 related to pension accounting charge

►

Comparable earnings per diluted share were $1.14, up 2% from $1.12 in 3Q06

►

Total revenue up 2% (and operating revenue up 3%) as a result of contractual revenue growth in the Supply Chain and Fleet Management Solutions business segments as well as favorable foreign exchange rate movements

►

Fleet Management Solutions (FMS) total revenue down 1% (but operating revenue up 1%) vs. prior year

–

Fuel revenue down 5%

–

Foreign exchange impact of 1%

►

Contractual revenue increased 7%

•

Full service lease revenue up 7% and contract maintenance revenue up 10%

►

Commercial rental revenue down 15%

►

FMS net before tax earnings (NBT) down 10%

–

FMS NBT percent of operating revenue down 150 basis points to 12.3%

►

FMS earnings negatively impacted by lower commercial rental, used vehicle sales and fuel results. Negative impacts partially offset by improved contractual business performance, and lower expenses for pension, sales/marketing and depreciation policy changes

5

3rd Quarter Results Overview (cont’d)

►

Supply Chain Solutions (SCS) total revenue up 8% (and operating revenue up 9%) vs. prior year, reflecting new/expanded business particularly in international markets, partially offset by a significant automotive plant closure and lower volumes in U.S. high tech/telecom

►

SCS net before tax earnings (NBT) up 6%

–

SCS NBT percent of operating revenue down 20 basis points to 5.3%

►

SCS earnings positively impacted by new/expanded business and lower incentive- based compensation, partially offset by the automotive plant closure

►

Dedicated Contract Carriage (DCC) total revenue down 2% (and operating revenue down 1%) vs. prior year due to decreased subcontracted transportation revenue and non-renewal of customer contracts

►

DCC net before tax earnings (NBT) up 5%

–

DCC NBT percent of operating revenue up 50 basis points to 8.8%

►

DCC earnings positively impacted by improved operating performance and lower incentive-based compensation

6

Key Financial Statistics

2007 2006 % B/(W)

Operating Revenue (1)(2) 1,170.7$ 1,139.6$ 3%

Fuel Services and Subcontracted Transportation Revenue 477.0 480.9 (1%)

Total Revenue 1,647.7$ 1,620.5$ 2%

Earnings Per Share 1.11$ 1.06$ 5%

Comparable Earnings Per Share (1) 1.14$ 1.12$ 2%

Memo:Average Shares (Millions) - Diluted 59.0 61.7 Tax Rate 37.3% 39.2%

Third Quarter

(1)

Non-GAAP financial measure; refer to Appendix -

Non-GAAP Financial Measures. Comparable net earnings exclude third quarter restructuring costs and property gain in 2007 and pension charge in 2006.

(2)

The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of

the business and as a measure of sales activity. Fuel services revenue net of related intersegment

billings, which is directly impacted by fluctuations in market fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of steady market fuel prices. Subcontracted transportation revenue is excluded from the operating revenue computation as it is largely a pass through to customers and the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation.

($ Millions, Except Per Share Amounts)

7

Key Financial Statistics

2007 2006 % B/(W)

Operating Revenue (1)(2) 3,447.0$ 3,308.2$ 4%

Fuel Services and Subcontracted Transportation Revenue 1,452.8 1,404.4 3%

Total Revenue 4,899.8$ 4,712.6$ 4%

Earnings Per Share 3.01$ 2.97$ 1%

Comparable Earnings Per Share (1) 3.04$ 2.91$ 4%

Memo:Average Shares (Millions) - Diluted 60.4 61.7 Tax Rate 38.1% 37.1%Adjusted Return on Capital (1) 7.4% 8.0%

Year-to-Date

(1)



(2)


the business and as a measure of sales activity. Fuel services revenue net of related intersegment

billings, which is directly impacted by fluctuations in market fuel prices, is excluded from the operating revenue computation as fuel is largely a pass through to customers for which the Company realizes minimal changes in profitability during periods of steady market fuel prices. Subcontracted transportation revenue is excluded from the operating revenue computation as it is largely a pass through to customers and the Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation.

($ Millions, Except Per Share Amounts)

8

Business Segment

2007 2006 % B/(W) 2007 2006 % B/(W)Operating Revenue (1):

Fleet Management Solutions 758.5$ 750.1$ 1% 1,051.9$ 1,060.0$ (1)%Supply Chain Solutions 325.3 299.1 9% 554.0 513.8 8%Dedicated Contract Carriage 138.9 140.7 (1)% 143.8 146.4 (2)%Eliminations (52.0) (50.3) (3)% (102.0) (99.7) (2)% Total 1,170.7$ 1,139.6$ 3% 1,647.7$ 1,620.5$ 2%

Segment Net Before Tax Earnings:Fleet Management Solutions 93.2$ 103.7$ (10)%Supply Chain Solutions 17.4 16.4 6%Dedicated Contract Carriage 12.3 11.7 5%Eliminations (6.4) (8.6) 25%

116.5 123.2 (5)%

Central Support Services (Unallocated Share) (10.1) (9.8) (2)%Earnings Before Restructuring and Income Taxes (1) 106.4 113.4 (6)%Restructuring and Other (Charges)/Recoveries, Net and Other Items (2) (1.9) (6.0) NMEarnings Before Income Taxes 104.5 107.4 (3)%Provision for Income Taxes (39.0) (42.1) 8%

Net Earnings 65.5$ 65.3$ 0%

Comparable Net Earnings (1) 67.2$ 68.8$ (2)%

Memo: Total Revenue

Third Quarter

(1)



(2)

Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net and other items including gain on sale of property in 2007 and pension accounting charge in 2006; however, the applicable portion of the restructuring and other (charges)/recoveries,

net and other items that related to each segment was as follows: FMS –

$5.7, SCS –

($5.6), DCC –

($1.1) and CSS –

($0.9) in 2007; FMS –

($6.0) in 2006.

($ Millions)

9

Business Segment

2007 2006 % B/(W) 2007 2006 % B/(W)Operating Revenue (1):

Fleet Management Solutions 2,214.7$ 2,179.7$ 2% 3,077.3$ 3,090.7$ 0%Supply Chain Solutions 977.3 862.8 13% 1,704.4 1,485.4 15%Dedicated Contract Carriage 412.6 413.3 0% 423.4 428.6 (1)%Eliminations (157.6) (147.6) (7)% (305.3) (292.1) (5)% Total 3,447.0$ 3,308.2$ 4% 4,899.8$ 4,712.6$ 4%

Segment Net Before Tax Earnings:Fleet Management Solutions 271.4$ 273.5$ (1)%Supply Chain Solutions 44.3 45.1 (2)%Dedicated Contract Carriage 35.2 31.4 12%Eliminations (23.2) (24.6) 6%

327.7 325.4 1%

Central Support Services (Unallocated Share) (30.4) (28.4) (7)%Earnings Before Restructuring and Income Taxes (1) 297.3 297.0 0%Restructuring and Other (Charges)/Recoveries, Net and Other Items (2) (3.6) (5.8) NMEarnings Before Income Taxes 293.7 291.2 1%Provision for Income Taxes (111.8) (108.1) (3)%

Net Earnings 181.9$ 183.1$ (1)%

Comparable Net Earnings (1) 183.6$ 179.9$ 2%

Memo: Total Revenue

Year-to-Date($ Millions)

(1)


Non-GAAP Financial Measures. Comparable net earnings exclude third quarter restructuring costs and property gain in 2007 and tax changes and pension charge in 2006.

(2)

Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net and other items including gain on sale of property in 2007 and pension accounting charge in 2006; however, the applicable portion of the restructuring and other (charges)/recoveries, net and other items that related to each segment was as follows: FMS –

$4.2, SCS –

($5.8), DCC –

($1.1) and CSS –

($0.9) in 2007; and FMS –

($5.9) and SCS –

$0.1 in 2006.

10

Capital Expenditures

2007 $2007 2006 O/(U) 2006

Full Service Lease 725$ 1,020$ (295)$

Commercial Rental 200 190 10

Operating Property and Equipment 57 53 4 Gross Capital Expenditures 982 1,263 (281)

Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 297 257 40

Less: Proceeds from Sale and Leaseback of Revenue Earning Equipment 150 - 150

Net Capital Expenditures 535$ 1,006$ (471)$

Memo: Acquisitions -$ 4$ (4)$

Year-to-Date

($ Millions)

11

Cash Flow

2007 2006Net Earnings 182$ 183$ Depreciation 606 550 Gains on Vehicle Sales, Net (37) (39) Amortization and Other Non-Cash Charges, Net 9 22

Changes in Working Capital and Deferred Taxes 77 (104) Cash Provided by Operating Activities 837 612

Proceeds from Sales (Primarily Revenue Earning Equipment) 297 257 Sale and Leaseback of Revenue Earning Equipment 150 - Collections of Direct Finance Leases 47 51 Other, Net 1 2

Total Cash Generated (1) 1,332 922

Capital Expenditures (2) (1,093) (1,172) Acquisitions - (4) Free Cash Flow (1) 239$ (254)$

(1)

Non-GAAP financial measure; refer to Appendix –

Non-GAAP Financial Measures(2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment

Year-to-Date ($ Millions)

12

275%

169%168%151%129%146%

201%

234%275%

0%

50%

100%

150%

200%

250%

300%

12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 9/30/07 LongTerm

TargetMidpoint

Total Obligations to Equity

Balance Sheet Debt to Equity

Debt to Equity Ratio

9/30/07 12/31/06 9/30/06 Balance Sheet Debt 2,816$ 2,817$ 2,632$ Percent To Equity 158% 164% 160%

Total Obligations (1) 3,014$ 2,895$ 2,724$ Percent To Equity (1) 169% 168% 166%

Total Equity 1,786$ 1,721$ 1,645$

Note: Includes impact of accumulated net pension related equity

charge of $182 million as of 9/30/07, $201 million as of 12/31/06, and $221 million as of 9/30/06.

(1)

Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed residual values under operating leases of $198 million at 9/30/07, $78 million at 12/31/06 and $92 million

at 9/30/06.(2)

Represents long term total obligations to equity target of 250

-

300% while maintaining a strong investment grade rating.

(1)

(2)

($ Millions)

13

Contents


14

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.

►

The number of used vehicles sold in the third quarter was 6,581, up 38% compared with prior year

►

Proceeds per unit for tractors and trucks were down 17% and 10%, respectively, in the third quarter compared with prior year

–

Excluding wholesaling type activity, retail pricing for both tractors and trucks was down 3% from the prior year

►

Units held for sale were 7,607 at quarter end, down 27% from 10,371 units held for sale at the end of the second quarter

►

Vehicles no longer earning revenue were 7,638 at quarter end; down 3,047 from the end of the second quarter

–

Vehicles no longer earning revenue were up 1,936 vs. prior year driven primarily by a higher used truck center inventory

►

Average commercial rental fleet was down 12% year-over-year

15

Contents


16

Comparable EPS Forecast (1)

FourthQuarter Full Year

2007 Comparable EPS Forecast $ 1.06 - 1.11 $ 4.10 - 4.15

2006 Comparable EPS 1.08$ 3.99$

(1)

Non-GAAP financial measure. Excludes restructuring charge and gain on property sale in 2007, and tax changes and pension charge in 2006.

($ Earnings Per Share)

►

Reaffirming full year 2007 comparable earnings forecast of $4.10 to $4.15 per share

►

Current forecast for comparable EPS is as follows:

17

Q & A

18

Appendix

Business Segment Detail

Central Support Services

Balance Sheet

Asset Management

Financial Indicators Forecast

Non-GAAP Financial Measures & Reconciliations

19

Fleet Management Solutions (FMS)

2007 2006 % B/(W)

Full Service Lease 496.2$ 464.3$ 7%Contract Maintenance 40.9 37.3 10%

Contractual Revenue 537.1 501.6 7%

Contract-related Maintenance 48.1 49.3 (3)%Commercial Rental 155.0 181.5 (15)%Other 18.3 17.7 3%Operating Revenue (a) 758.5 750.1 1%Fuel Services Revenue 293.4 309.9 (5)%

Total Revenue 1,051.9$ 1,060.0$ (1)%

Segment Net Before Tax Earnings (NBT) 93.2$ 103.7$ (10)%Segment NBT as % of Total Revenue 8.9% 9.8%Segment NBT as % of Operating Revenue (a) 12.3% 13.8%

Third Quarter

(a)


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 increases or decreases in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs.

($ Millions)

20

Fleet Management Solutions (FMS)

2007 2006 % B/(W) Full Service Lease 1,461.4$ 1,375.8$ 6%Contract Maintenance 118.1 104.0 14%

Contractual Revenue 1,579.5 1,479.8 7%

Contract-related Maintenance 150.3 144.4 4%Commercial Rental 431.3 502.3 (14)%Other 53.6 53.2 1%Operating Revenue (a) 2,214.7 2,179.7 2%Fuel Services Revenue 862.6 911.0 (5)%Total Revenue 3,077.3$ 3,090.7$ 0%


Year-to-Date

(a)


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 increases or decreases in market fuel prices during a short period of time as customer pricing for fuel services is established based on market fuel costs.

($ Millions)

21

Supply Chain Solutions (SCS)

2007 2006 % B/(W) U.S. Operating Revenue Automotive & Industrial 135.3$ 122.8$ 10% High Tech & Consumer Industries 70.6 74.6 (5)% Transportation Management 7.8 7.9 (1)%U.S. Operating Revenue (a) 213.7 205.3 4%International Operating Revenue (a) 111.6 93.8 19%Operating Revenue (a) 325.3 299.1 9%Subcontracted Transportation 228.7 214.7 7%Total Revenue 554.0$ 513.8$ 8%

Segment Net Before Tax Earnings (NBT) 17.4$ 16.4$ 6%Segment NBT as % of Total Revenue 3.1% 3.2%Segment NBT as % of Operating Revenue (a) 5.3% 5.5%

Memo: Fuel Costs 29.7$ 26.6$ (12)%

Third Quarter

(a)


the SCS business segment and as a measure of sales activity. Subcontracted transportation

is deducted from total revenue to arrive at operating revenue as subcontracted transportation is largely a pass-through to customers. The Company realizes minimal changes in profitability as a result of fluctuations in subcontracted transportation.

($ Millions)

22

Supply Chain Solutions (SCS)

2007 2006 % B/(W) U.S. Operating Revenue Automotive & Industrial 410.4$ 367.9$ 12% High Tech & Consumer Industries 219.6 217.8 1% Transportation Management 24.3 22.5 8%U.S. Operating Revenue (a) 654.3 608.2 8%International Operating Revenue (a) 323.0 254.6 27%Operating Revenue (a) 977.3 862.8 13%Subcontracted Transportation 727.1 622.6 17%Total Revenue 1,704.4$ 1,485.4$ 15%


Memo: Fuel Costs 88.9$ 79.3$ (12)%

Year-to-Date

(a)


the SCS business segment and as a measure of sales activity. Subcontracted transportation


($ Millions)

23

Dedicated Contract Carriage (DCC)

2007 2006 % B/(W)

Operating Revenue (a) 138.9$ 140.7$ (1)% Subcontracted Transportation 4.9 5.7 (15)%Total Revenue 143.8$ 146.4$ (2)%


Memo: Fuel Costs 26.7$ 27.8$ 4%

Third Quarter($ Millions)

(a)


the DCC business segment and as a measure of sales activity. Subcontracted transportation


24

Dedicated Contract Carriage (DCC)

2007 2006 % B/(W)

Operating Revenue (a) 412.6$ 413.3$ 0% Subcontracted Transportation 10.8 15.3 (30)%Total Revenue 423.4$ 428.6$ (1)%


Memo: Fuel Costs 77.9$ 80.4$ 3%


(a)


the DCC business segment and as a measure of sales activity. Subcontracted transportation


25

Central Support Services (CSS)

2007 2006 % B/(W)

Allocated CSS Costs 36.6$ 39.0$ 6%Unallocated CSS Costs 10.1 9.8 (2)%Total CSS Costs 46.7$ 48.8$ 4%

Third Quarter($ Millions)

26

Central Support Services (CSS)

2007 2006 % B/(W)

Allocated CSS Costs 108.8$ 113.6$ 4%Unallocated CSS Costs 30.4 28.4 (7)%Total CSS Costs 139.2$ 142.0$ 2%


27

Balance Sheet

September 30, December 31,2007 2006

Cash and Cash Equivalents 106$ 129$

Other Current Assets 1,166 1,133

Revenue Earning Equipment, Net 4,537 4,509

Operating Property and Equipment, Net 511 499

Other Assets 566 559

Total Assets 6,886$ 6,829$

Short-Term Debt / Current Portion Long-Term Debt 386$ 333$

Other Current Liabilities 913 935

Long-Term Debt 2,430 2,484

Other Non-Current Liabilities 1,371 1,356

Shareholders' Equity 1,786 1,721

Total Liabilities and Shareholders' Equity 6,886$ 6,829$

($ Millions)

28

815

4,342

3,907

4,279

710

3,554

3,147

3,752

2,174

1,099

3,8913,808

2,9103,032

3,243

1,198

3,060

2,827

1,198

2,951

1,647

3,825

3,200

2,924

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Redeployments Extensions Early Terminations Early Replacements

3QYTD02 3QYTD03 3QYTD04 3QYTD05 3QYTD06 3QYTD07

Asset Management Update (a)

(a)

U.S. only(b)

Excludes early terminations where customer purchases vehicle

(b)

29

Assets Under Management (a)

ForecastMidpoint

2000 2001 2002 2003 2004 2005 2006 9/30/07 2007 (b)

Revenue Earning Equipment 4,588$ 4,148$ 4,493$ 5,809$ 6,352$ 6,658$ 7,335$ 7,247$ 7,360$

Direct Finance Leases 637 640 622 656 649 624 592 584 580

Operating Leases 1,805 2,140 1,511 286 300 252 214 301 301

Assets Under Management 7,030$ 6,928$ 6,626$ 6,751$ 7,301$ 7,534$ 8,141$ 8,132$ 8,241$

($ Millions)

(a) Assets under management represent the original cost of all vehicles owned and held under lease by Ryder.(b) Excludes impact of foreign exchange movements in 2007.

30

Financial Indicators Forecast (1)

(1)

Free Cash Flow and Obligations to Equity include acquisitions.

Gross Capital Expenditures exclude acquisitions.(2)


Non-GAAP Financial Measures.(3)

Includes $176 million payment to the IRS related to full resolution of 1998 -

2000 tax period matters.(4)

Includes acquisition of Pollock NationaLease

which closed in October 2007.

($ Millions)

$1,054$835 $949

$1,091

$1,381$1,183 $1,255

$1,635

Total Cash Generated (2)

2000 2001 2002 2003 2004 2005 2007ForecastMidpoint

Significant and predictable cash generation

Invest in growth

Increase assets under management

Increase financial leverage

2006

Total Obligations to Equity Ratio (1)(2)


Memo: Assets Under Management

6,928 6,626 6,751 7,301 7,534 8,2417,030

275%

201%

146%129%

234%

151% 163%

Equity

Total Obligations (2)

2005

168%

8,141

Gross Capital Expenditures

$1,289

$600$725

$1,165

$657

$1,411 $1,255


Memo: Free Cash Flow (2)

131 367 260 140 (231)(3) 230(4)(270)

Revenue Earning Equipment

PP&E/Other

$1,760

2006

(444)

31

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 MeasureReconciliation & Additional Information Presented on Slide Titled Page

Operating Revenue Total Revenue Key Financial Statistics 6 - 7

Comparable Earnings Per Share / ComparableNet Earnings

Net Earnings / Net Earnings Per Share EPS and Net Earnings Reconciliation 32

Earnings Before Restructuring and Income Taxes Net Earnings Business Segment 8 - 9

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 - 36

Total Obligations / Total Obligations to Equity Balance Sheet Debt / Debt to Equity Debt to Equity RatioDebt to Equity Reconciliation

1237 - 38

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

19 - 24

32

3Q07 - 3Q07 - YTD07 - YTD07 -Net Earnings EPS Net Earnings EPS

Net Earnings $ 65.5 $ 1.11 $ 181.9 $ 3.01

3Q07 Restructuring Charge 7.8 0.13 7.8 0.13

Gain on Sale of Property (6.1) (0.10) (6.1) (0.10)

Comparable Net Earnings $ 67.2 $ 1.14 $ 183.6 $ 3.04

Full Year3Q06 - 3Q06 - YTD06 - YTD06 - 2006

Net Earnings EPS Net Earnings EPS EPS

Net Earnings $ 65.3 $ 1.06 $ 183.1 $ 2.97 $ 4.04

Pension Accounting Charge 3.5 0.06 3.5 0.06 0.06

Tax Changes - - (6.8) (0.11) (0.11)

Comparable Net Earnings $ 68.8 $ 1.12 $ 179.9 $ 2.91 $ 3.99

EPS and Net Earnings Reconciliation

($ Millions or $ Earnings Per Share)

* Earnings per share amounts are calculated independently for each component and may not be additive due to rounding

33

Adjusted Return on Capital Reconciliation

9/30/07 9/30/06

Net Earnings (1) 248$ 242$

Discontinued Operations - (2)

Cumulative Effect of Changes in Accounting Principles - 2

Income Taxes 147 142 Adjusted Earnings Before Income Taxes 395 385

Adjusted Interest Expense (2) 166 140

Adjusted Income Taxes (3) (211) (203) Adjusted Net Earnings 350$ 323$

Average Total Debt 2,830$ 2,350$

Average Off-Balance Sheet Debt 124 110

Average Adjusted Total Shareholders' Equity (4) 1,750 1,577 Adjusted Average Total Capital 4,704$ 4,037$

Adjusted Return on Capital (5) 7.4% 8.0%

(1) Earnings calculated based on a 12-month rolling period.(2) Interest expense includes implied interest on off-balance sheet vehicle obligations.(3) Income taxes were calculated using the effective income tax rate for the period exclusive of benefits from tax law changes recognized in 2006.(4) Represents shareholders’

equity adjusted for discontinued operations, accounting changes

and the tax benefits in those periods.(5) The Company adopted adjusted return on capital, a non GAAP financial measure, as the Company believes that both debt (including off-balance sheet debt)

and equity should be included in evaluating how effectively capital is utilized across the business.

Note: Prior year has been restated to conform with current year presentation

($ Millions)

34

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.

($ Millions)

12/31/00 (4) 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06

Cash Provided by Operating Activities 1,023$ 365$ 617$ 803$ 867$ 779$ 854$

Less: Changes in Balance of Trade Receivables Sold (270) 235 110 - - - -

Collections of Direct Finance Leases 67 66 66 61 64 70 66

Proceeds from Sales (Primarily Revenue Earning Equipment) 230 173 152 210 331 334 333

Proceeds from Sale and Leaseback of Assets - - - 13 118 - -

Other Investing, Net 4 (4) 4 4 1 - 2

Total Cash Generated (1) 1,054 835 949 1,091 1,381 1,183 1,255

Capital Expenditures (2) (1,296) (704) (582) (734) (1,092) (1,399) (1,695)

Acquisitions (28) - - (97) (149) (15) (4)

Free Cash Flow (3) (270)$ 131$ 367$ 260$ 140$ (231)$ (444)$

Memo:

Depreciation Expense 580$ 545$ 552$ 625$ 706$ 740$ 743$

Gains on Vehicle Sales, Net 19$ 12$ 14$ 16$ 35$ 47$ 51$

35


Midpoint12/31/07

Cash Provided by Operating Activities 1,100$ Collections of Direct Finance Leases 64 Proceeds from Sales (Primarily Revenue Earning Equipment) 320 Proceeds from Sale and Leaseback of Revenue Earning Equipment 150

Total Cash Generated (1) 1,634

Capital Expenditures (2) (1,330) Acquisitions (3) (74)

Free Cash Flow (4) 230$

(1)


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)


Represents acquisition of Pollock NationaLease

which closed in October 2007.(4)


important measure of comparative operating performance. Management believes free cash flow provides investors with an important perspective on the cash available

for debt service and shareholders after making capital investments required to support ongoing business operations. The calculation of free cash flow

may be different from the calculation used by other companies and therefore comparability may be limited.

($ Millions)

36


9/30/07 9/30/06Cash Provided by Operating Activities 837$ 612$ Collections of Direct Finance Leases 47 51 Proceeds from Sales (Primarily Revenue Earning Equipment) 297 257 Sale and Leaseback of Revenue Earning Equipment 150 - Other Investing, net 1 2

Total Cash Generated (1) 1,332 922

Capital Expenditures (2) (1,093) (1,172) Acquisitions - (4)

Free Cash Flow (3) 239$ (254)$

(1)


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)



important measure of comparative operating performance. Management believes free cash flow provides investors with an important perspective on the cash available

for debt service and shareholders after making capital investments required to support ongoing business operations. The calculation of free cash flow

may be different from the calculation used by other companies and therefore comparability may be limited.

($ Millions)

37

Debt to Equity Reconciliation($ Millions)

% to % to % to % to % to % to % to12/31/00 Equity 12/31/01 Equity 12/31/02 Equity 12/31/03 Equity 12/31/04 Equity 12/31/05 Equity 12/31/06 Equity

Balance Sheet Debt $2,017 161% $1,709 139% $1,552 140% $1,816 135% $1,783 118% $2,185 143% $2,817 164%

Receivables Sold 345 110 - - - - -

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 879 625 370 153 161 117 78

PV of contingent rentals under securitizations 209 441 311 - - - -

Total Obligations (1) $3,450 275% $2,885 234% $2,233 201% $1,969 146% $1,944 129% $2,302 151% $2,895 168%

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.

38

Debt to Equity Reconciliation

ForecastMidpoint % to

12/31/07 Equity

Balance Sheet Debt 2,857$ 154%

PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 159

Total Obligations (1) 3,016$ 163%

(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)

39

Ryder3Q07Final

Economy & Finance

3q06 total revenue

commercial rental revenue

scs earnings

dcc earnings

fms earnings

contract maintenance

tax earnings nbt

service lease revenue