Ryder Reports Fourth Quarter and Full-Year 2012 Results and Provides 2013 Forecast

  Ryder Reports Fourth Quarter and Full-Year 2012 Results and Provides 2013
  Forecast

  *Q4 Comparable EPS from Continuing Operations Up 21% to $1.17
  *Q4 EPS from Continuing Operations Increase 16% to $1.07
  *Q4 Operating Revenue Grows 4%; Total Revenue Up 3%
  *Full-Year Comparable EPS from Continuing Operations Up 16% to $4.04
  *Full-Year EPS from Continuing Operations Up 18% to $3.91
  *Full-Year Operating Revenue Up 5%; Total Revenue Grows 3% to $6.3 Billion
  *2013 Comparable EPS Forecast of $4.70 to $4.85 vs. $4.41 for 2012;
    Excludes Non-Operating Pension Expenses of $0.24 in 2013 and $0.37 in 2012

Business Wire

MIAMI -- January 31, 2013

Ryder System, Inc. (NYSE: R), a leader in transportation and supply chain
management solutions, today reported earnings per diluted share from
continuing operations for the three-month period ended December 31, 2012 were
$1.07, compared with $0.92 in the year-earlier period. Earnings from
continuing operations for the fourth quarter of 2012 were $54.9 million,
compared with $47.7 million in the year-earlier period. Earnings per diluted
share for the fourth quarter of 2012 included an after-tax charge of $0.10 or
$5.1 million associated with certain vehicle-related losses from Superstorm
Sandy, for which insurance recoveries remain uncertain and have not been
recognized. Earnings per diluted share in the year-earlier period included an
after-tax charge of $0.05 or $2.4 million for planned restructuring costs
related to the integration of an acquisition. Excluding these items in both
periods, comparable earnings per diluted share from continuing operations for
the fourth quarter of 2012 were $1.17, up 21% from $0.97 in the year-earlier
period, and comparable earnings from continuing operations of $60.1 million
increased 20% from $50.1 million in the year-earlier period. The increase in
comparable earnings reflects strong performance in both business segments,
Fleet Management Solutions (FMS) and Supply Chain Solutions (SCS).

Total revenue for the fourth quarter of 2012 was $1.58 billion, up 3% from
$1.54 billion in the same period last year. Operating revenue (revenue
excluding FMS fuel and all subcontracted transportation) was $1.29 billion, up
4% from $1.24 billion in the year-earlier period, reflecting organic full
service lease growth as well as increased volumes and new business in the SCS
automotive sector. FMS business segment total and operating revenue improved
4% due to higher full service lease revenue. SCS business segment total
revenue increased 2% reflecting higher operating revenue. SCS operating
revenue grew 4% largely reflecting improved volumes and new business in both
the automotive industry and dedicated services as well as higher fuel cost
pass-throughs.

Net earnings per diluted share (including discontinued operations) for the
three-month period ended December 31, 2012 were $1.05 versus $0.93 in the
year-earlier period. Earnings per diluted share from discontinued operations
(previously announced in 2009) for the fourth quarter of 2012 totaled a loss
of $0.02 compared with income of $0.01 in the same period of 2011. Net
earnings for the fourth quarter of 2012 were $53.8 million versus $48.1
million in the year-earlier period.

Commenting on the Company’s fourth quarter and full-year 2012 performance,
Ryder Executive Chairman Greg Swienton said, “We closed 2012 with a strong
fourth quarter that included higher revenue and double-digit earnings growth.
For full-year 2012, we delivered a 5% increase in operating revenue and
earnings per share growth of 16%, despite unexpected mid-year challenges in
rental demand. In Fleet Management Solutions, we grew our full service lease
fleet and expanded our contract maintenance business. Within Supply Chain
Solutions, we saw strong performance and growth in our automotive business and
dedicated services offering. We are also pleased that both our earnings and
return on capital spread have returned to pre-recession levels.”

              Fourth Quarter Business Segment Operating Results

Fleet Management Solutions

In the FMS business segment, total revenue in the fourth quarter of 2012 was
$1.12 billion, up 4% compared with the year-earlier period, due to higher
operating revenue. Fuel services revenue in the fourth quarter of 2012
increased 3%, due to higher fuel prices passed through to customers. Operating
revenue (revenue excluding fuel) in the fourth quarter of 2012 was $849.5
million, up 4%. Full service lease revenue increased 6%, due to higher prices
on replacement vehicles and organic fleet growth. Commercial rental revenue
decreased 1%, reflecting lower market demand, although pricing was higher.

The FMS business segment’s pre-tax earnings were $86.0 million in the fourth
quarter of 2012, up 17% from $73.8 million in the same period of 2011.
Increased earnings reflect improved full service lease results (due to lower
maintenance costs on a newer fleet and organic growth), as well as lower
compensation-related expenses. Earnings growth was partially offset by lower
commercial rental performance, as a result of lower market demand on a 3%
smaller average fleet. Rental power fleet utilization was a strong 78% for the
fourth quarter of 2012, a decline of only 70 basis points from the
year-earlier high demand period. Year-over-year rental utilization comparisons
improved significantly versus the first half of 2012. This increase reflects
primarily the benefit of fleet right-sizing actions taken earlier in the year,
as well as better-than-expected fourth quarter demand, due, in part, to
Superstorm Sandy recovery efforts. Business segment earnings before tax (EBT)
as a percentage of operating revenue were 10.1% in the fourth quarter of 2012,
up 100 basis points compared with 9.1% in the same quarter a year ago.

Supply Chain Solutions

In the SCS business segment, fourth quarter 2012 total revenue was $575.3
million, up 2%, as higher operating revenue offset lower subcontracted
transportation. Operating revenue (revenue excluding subcontracted
transportation) was $489.1 million, an increase of 4% compared with the same
quarter a year ago. SCS operating revenue comparisons primarily benefited from
increased volumes and new business in both the automotive sector and dedicated
services, as well as higher fuel costs passed through to customers.

The SCS business segment’s pre-tax earnings in the fourth quarter of 2012 were
$31.0 million, up 22% from $25.5 million in the same quarter of 2011. The
increase was driven by higher volumes and new business in both the automotive
sector and dedicated services. These improvements were partially offset by
higher medical benefit costs. Business segment earnings before tax as a
percentage of operating revenue were 6.3%, up 90 basis points from 5.4% 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. Most CSS costs are allocated to the
business segments. In the fourth quarter of 2012, CSS costs were $48.7
million, compared with $51.7 million in the year-earlier period, reflecting
primarily lower compensation-related expenses and professional fees.

Non-Operating Pension Costs

Non-operating components of pension costs are excluded from segment earnings
before tax in order to more accurately reflect the operating performance of
the business segments. Non-operating pension costs totaled $7.9 million in the
fourth quarter of 2012, up from $4.7 million in the year-earlier period. The
increase reflects lower assumed pension asset returns for 2012.

Restructuring and Other Items

In the fourth quarter of 2012, as a direct result of Superstorm Sandy, the
Company incurred a liability of $8.2 million ($5.1 million after-tax) for
property damage to vehicles owned by full service lease customers for which
Ryder has liability under certain agreements. The Company is currently
pursuing recovery of these losses under applicable property and casualty
insurance programs. However, because recovery of these losses is uncertain, no
offsetting benefits were recognized in the fourth quarter. Insurance
recoveries will be recognized if and when they are probable of receipt. In
December 2012, the Company enhanced its insurance coverage to mitigate this
type of risk in the future.

Additionally, Company-owned units with a carrying value of $15.7 million were
damaged or completely destroyed as a direct result of Superstorm Sandy. The
Company expects to recover at least the cost of repairs or carrying value of
these assets from insurance proceeds and customer billings.

Income Taxes

The Company’s effective income tax rate from continuing operations for the
fourth quarter of 2012 was 32.9% of earnings before tax compared with 34.8% in
the year-earlier period. The decline in effective tax rate reflects a higher
proportionate amount of earnings in lower tax rate jurisdictions.

Capital Expenditures

Capital expenditures were $2.16 billion for 2012, compared with $1.76 billion
in the same period of 2011. Net capital expenditures (including proceeds from
the sale of assets) were $1.62 billion for 2012, up from $1.42 billion in the
same period of 2011. The increase in capital expenditures reflects planned
investments to fulfill contractual full service lease sales to customers that
are renewing and growing their fleets with Ryder.

Cash Flow

Operating cash flow from continuing operations in 2012 was $1.13 billion, up
9% from $1.04 billion in the same period of 2011, due to higher cash-based
earnings. Total cash generated (including proceeds from used vehicle sales)
from continuing operations in 2012 was $1.75 billion, up 21% from $1.44
billion in the same period of 2011. The increase in total cash generated
includes a $130 million sale leaseback of revenue earning equipment as well as
higher used vehicle sales proceeds. Free cash flow from continuing operations
in 2012 was negative $384.2 million, down from a negative $256.8 million in
the same period of 2011, due primarily to increased investments in full
service lease vehicles to fulfill signed contracts.

Leverage

Balance sheet debt as of December 31, 2012 increased by $438.7 million
compared with year-end 2011, due primarily to increased vehicle investments.
The leverage ratio for balance sheet debt as of December 31, 2012 was 260%,
compared with 257% at year-end 2011. Total obligations to equity as of
December 31, 2012 were 270%, up from 261% at year end 2011. This increase
reflects a pension equity charge and, to a lesser extent, growth in the
business. Total obligations to equity remain within Ryder’s long-term target
range of 250% to 300%.

                            2013 Earnings Forecast

Commenting on the Company’s outlook, Ryder President and Chief Executive
Officer Robert Sanchez said, “Our solid execution, along with the fleet
right-sizing and other cost initiatives we undertook in 2012, helped us close
the year with higher revenue and a double-digit earnings increase. Although
customers’ confidence levels and their willingness to sign long-term contracts
are still affected by soft and uncertain economic conditions, we are confident
that we can profitably grow contractual revenue in both of our business
segments in 2013.

“In Fleet Management Solutions, we expect continued growth in our full service
lease and contract maintenance offerings. Given continued strong lease fleet
replacement activity, our fleet is becoming newer and, therefore, less costly
to maintain. Although rental demand is expected to be modestly lower, we
should see improved utilization levels and pricing on a smaller fleet. In used
vehicle sales, we expect higher volumes with continued strong pricing,
although modestly lower than 2012. In addition, we expect depreciation
benefits associated with strong used vehicle pricing realized over the past
few years.

“In Supply Chain Solutions, our growth from new business and improved
retention levels is expected to more than offset modest anticipated volume
declines in the high-tech and consumer packaged goods sectors. This growth and
the resulting overhead leverage is forecast to lead to continued margin
expansion this year.

“In addition, we believe our ongoing focus on new capabilities and innovation
will continue to enhance our value propositions across both business segments
in ways that appeal to companies that have not outsourced before.

“Overall, we expect the forward momentum of our business will enable us to
deliver organic growth and strong earnings, while continuing strategic
investments and overcoming headwinds including higher insurance, medical and
compensation costs. Based on this outlook, we expect to deliver record
comparable earnings per share in 2013, with significant continued upside in
future years.”

Ryder forecasts full-year 2013 comparable earnings from continuing operations
to be in the range of $4.70 to $4.85 per diluted share, up 7% to 10% from
$4.41 per diluted share in 2012. Full-year earnings comparisons exclude
non-operating pension costs of $0.24 per diluted share in 2013, and $0.37 per
diluted share in 2012. The Company is also establishing a first quarter 2013
comparable earnings forecast of $0.75 to $0.80 per diluted share, up 9% to 16%
from $0.69 in the first quarter of 2012. First quarter earnings comparisons
exclude non-operating pension costs of $0.06 per diluted share in 2013, and
$0.10 per diluted share in 2012. Total revenue for the full-year 2013 is
forecast to be approximately $6.50 billion, up 4% from $6.26 billion in 2012.
Operating revenue (revenue excluding FMS fuel and all subcontracted
transportation) for the full-year 2013 is forecast to be approximately $5.29
billion, up 4% from $5.07 billion in 2012.

                       Supplemental Company Information

Full-Year 2012 Operating Results

Total revenue from continuing operations for the full-year 2012 was $6.26
billion, up 3% from $6.05 billion in 2011. Operating revenue from continuing
operations for the full-year 2012 was $5.07 billion, up 5% from $4.81 billion
in 2011.

Ryder’s 2012 earnings from continuing operations were $200.9 million, compared
with $171.4 million in the year-earlier period. Earnings per diluted share
from continuing operations were $3.91 for 2012, up 18% versus $3.31 in 2011.
Full-year 2012 comparable earnings from continuing operations were $207.4
million, an improvement of 15% from $180.6 million in 2011. Comparable 2012
earnings per diluted share from continuing operations of $4.04 rose 16% from
$3.49 in 2011. Comparable earnings and earnings per share from continuing
operations excluded restructuring and other items, and certain tax items in
both 2012 and 2011.

Ryder’s 2012 net earnings, including discontinued operations, were $210.0
million, up 24% compared with $169.8 million in 2011. Earnings per diluted
share were $4.09 for 2012, an improvement of 25% from $3.28 in 2011.

Business Description

Ryder System, Inc. is a FORTUNE 500® commercial transportation, logistics and
supply chain management solutions company. Ryder’s stock (NYSE: R) is a
component of the Dow Jones Transportation Average and the Standard & Poor’s
500 Index. The Company’s financial performance is reported in the following
two, inter-related business segments:

  *Fleet Management Solutions – The FMS business segment combines several
    capabilities into a comprehensive package that provides one-stop
    outsourcing of the acquisition, financing, 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.
  *Supply Chain Solutions – The SCS business segment offers a broad range of
    innovative logistics management services that are designed to optimize a
    customer’s supply chain and address key customer business requirements.
    The segment now includes all activity related to the Company’s dedicated
    solution (dedicated contract carriage). These solutions involve
    strategically designed processes that direct the movement of materials and
    related information from the acquisition of raw materials to the delivery
    of finished products to the end user.

Notations

Earnings Before Tax (EBT): Ryder’s primary measurement of business segment
financial performance, earnings before tax (EBT), allocates Central Support
Services to each business segment and excludes restructuring and other items,
as well as non-operating pension costs.

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 FMS business
segment. The level of capital required to support the full service lease
product line varies directly with customer contract signings for replacement
vehicles and growth. These contracts are long-term agreements that result in
ongoing 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.

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, including our
expectations regarding revenue growth, maintenance costs, rental utilization
and pricing, used vehicle results, future earnings, and about the economic
trends that may affect our future operations and provide upside in future
years. 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, increases or decreases in market
demand in the commercial rental market, fluctuations in market demand on the
sale of used vehicles impacting our pricing and our anticipated proportion of
retail versus wholesale sales, higher than expected maintenance costs, lower
than expected savings resulting from our company-wide cost savings
initiatives, a slowdown of the economic recovery and decreases in freight
demand, our ability to obtain adequate profit margins for our services, our
inability to maintain current pricing levels due to soft economic conditions,
uncertainty or decline in economic and market conditions affecting contractual
lease demand, competition from other service providers, customer retention
levels, unexpected volume declines, loss of key customers in the Supply Chain
Solutions (SCS) business segment, unexpected reserves or write-offs due to the
deterioration of the credit worthiness or bankruptcy of customers, changes in
customers’ business environments that will limit their ability to commit to
long-term vehicle leases, a decrease in credit ratings, increased debt costs,
adequacy of accounting estimates, reserves and accruals particularly with
respect to pension, taxes, insurance and revenue, sudden or unusual changes in
fuel prices, our ability to manage our cost structure, 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, including comparable
earnings from continuing operations, 2013 comparable earnings forecasts,
operating revenue, total cash generated, free cash flow, total obligations,
and the ratios based on these financial measures, as well as the other
financial measures identified in the tables following this release. Additional
information as required by Regulation G regarding non-GAAP financial measures
can be found in our investor presentation for the quarter, our most recent
Form 10-K, Form 10-Q and our Form 8-K filed as of the date of this news
release with the SEC, which are available in the Investors area of our website
at http://investors.ryder.com.

Beginning in 2013, comparable earnings and the other financial measures and
ratios derived from comparable earnings will exclude non-operating pension
costs. Historical financial information through December 31, 2012 included in
this news release is calculated using our old method, which includes
non-operating pension costs. Forecast information for 2013 in this news
release is calculated using our new method, which excludes non-operating
pension costs. For more information on our new calculation method and the
differences between our new method and our old method, see our investor
presentation for the quarter, which is available in the Investors area of our
website at http://investors.ryder.com and is filed as an exhibit to our Form
8-K filed as of the date of this news release with the SEC.

Conference Call and Webcast Information:

Ryder’s earnings conference call and webcast is scheduled for Thursday,
January 31, 2013, from 11:00 a.m. to 12:00 noon Eastern Time. Speakers will be
Executive Chairman Greg Swienton, President and Chief Executive Officer Robert
Sanchez, and Executive Vice President and Chief Financial Officer Art Garcia.

  *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: RG3828610 and
    Passcode: RYDER.
  *To access audio replays of the conference and view a presentation of
    Ryder’s earnings results: Dial 1-888-568-0403 (outside U.S. dial
    1-203-369-3918), 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.

                                                    
RYDER SYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - UNAUDITED

Periods ended December31, 2012 and 2011

(In millions, except per share amounts)
                                                                             
                               Three Months            Twelve Months
                               2012       2011        2012         2011
                                                                     
Lease and rental revenues      $ 688.0     664.5       $ 2,695.4     2,553.9
Services revenue               685.7       666.0       2,707.0       2,609.2
Fuel services revenue          209.8      210.6      854.6        887.5   
Total revenues                 1,583.5    1,541.1    6,257.0      6,050.5 
                                                                     
Cost of lease and rental       476.2       446.6       1,890.7       1,746.1
Cost of services               576.3       560.0       2,274.1       2,186.4
Cost of fuel services          206.1       207.7       838.7         873.5
Other operating expenses       35.0        34.1        135.9         129.2
Selling, general and           198.7       202.9       766.7         771.2
administrative expenses
Gains on vehicle sales, net    (21.4   )   (16.6   )   (89.1     )   (62.9   )
Interest expense               35.3        33.0        140.6         133.2
Miscellaneous income, net      (4.5    )   (2.6    )   (11.7     )   (9.1    )
Restructuring and other        —          2.9        8.1          3.7     
charges, net
                               1,501.7    1,468.0    5,953.9      5,771.1 
                                                                     
Earnings from continuing
operations before income       81.8        73.1        303.1         279.4
taxes
Provision for income taxes     26.9       25.4       102.2        108.0   
Earnings from continuing       54.9        47.7        200.9         171.4
operations
(Loss) earnings from
discontinued operations, net   (1.1    )   0.4        9.1          (1.6    )
of tax
Net earnings                   $ 53.8     48.1       $ 210.0      169.8   
                                                                     
Earnings (loss) per common
share - Diluted
Continuing operations          $ 1.07      0.92        $ 3.91        3.31
Discontinued operations        (0.02   )   0.01       0.18         (0.03   )
Net earnings                   $ 1.05     $  0.93    $ 4.09       3.28    
                                                                     
Earnings per share
information - Diluted
Earnings from continuing       $ 54.9      47.7        $ 200.9       171.4
operations
Less: Distributed and
undistributed earnings         (0.7    )   (0.8    )   (2.6      )   (2.7    )
allocated to nonvested stock
Earnings from continuing
operations available to        $ 54.2     46.9       $ 198.3      168.6   
common stockholders
                                                                     
Weighted-average shares        50.8       50.7       50.7         50.9    
outstanding - Diluted
                                                                     
Memo:
Depreciation expense           $ 241.2    227.0      $ 939.7      872.3   
Subcontracted transportation   $ 86.1     93.5       $ 336.1      348.5   
                                                                     
Comparable earnings per
share from continuing
operations: *
EPS from continuing            $ 1.07      0.92        $ 3.91        3.31
operations
Superstorm Sandy               0.10        —           0.10          —
vehicle-related losses
Net tax (benefits) charges     —           —           (0.08     )   0.09
Restructuring and other        —           0.04        0.11          0.05
charges
Acquisition-related            —          0.01       —            0.04    
transaction costs
Comparable EPS from            $ 1.17     0.97       $ 4.04       3.49    
continuing operations*
                                                                             
* Non-GAAP financial measure.

Note: Amounts may not be additive due to rounding.

                                                          
RYDER SYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS - UNAUDITED

(Dollars in millions)
                                                             
                                         December 31, 2012   December 31, 2011
                                                             
Assets:
Cash and cash equivalents                $   66.4            104.6
Other current assets                     973.8               983.6
Revenue earning equipment, net           5,754.6             5,049.7
Operating property and equipment, net    624.9               624.2
Other assets                             899.3              855.8
                                         $   8,319.0        7,617.8
                                                             
Liabilities and shareholders' equity:
Short-term debt and current portion of   $   368.0           274.4
long-term debt
Other current liabilities                904.7               899.5
Long-term debt                           3,452.8             3,107.8
Other non-current liabilities            2,126.0             2,018.1
(including deferred income taxes)
Shareholders' equity                     1,467.5            1,318.2
                                         $   8,319.0        7,617.8
                                                             

                                                           
SELECTED KEY RATIOS AND METRICS
                                                             
                                         December 31, 2012   December 31, 2011
                                                             
Debt to equity                           260       %         257       %
Total obligations to equity *            270       %         261       %
Effective interest rate (average cost of 3.8       %         4.3       %
debt)
                                                                       

                                             Twelve months ended December 31,
                                              2012                2011
                                                                   
Cash provided by operating activities from    $   1,134.1          1,042.0
continuing operations
Free cash flow *                              (384.2        )      (256.8   )
Capital expenditures paid                     2,133.2              1,698.6
                                                                   
Capital expenditures (accrual basis)          $   2,160.8          1,759.9
Less: Proceeds from sales (primarily          (412.8        )      (300.2   )
revenue earning equipment)
Less: Sale and leaseback of revenue earning   (130.2        )      (37.4    )
equipment
Net capital expenditures                      $   1,617.8         1,422.2  
                                                                            

                                       
                                         Twelve months ended December 31,
                                         2012               2011
                                                             
Return on average shareholders' equity   14.9     %          11.9    %
Return on average assets                 2.6      %          2.3     %
Adjusted return on capital *             5.6      %          5.7     %
Weighted average cost of capital         4.8      %          5.5     %
                                                                     

* Non-GAAP financial measure; see reconciliation to closest GAAP financial
measure included within this release.
Note: Amounts may not be additive due to rounding.

                                                                            
RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED

Periods ended December31, 2012 and 2011

(Dollars in millions)
                                                                                
                   Three Months                       Twelve Months
                   2012         2011       B(W)     2012         2011        B(W)
                                                                                
Revenue:
Fleet Management
Solutions:
Full service       $ 536.7       508.4       6   %    $ 2,102.2     1,996.3     5   %
lease
Contract           46.9         46.0       2   %    187.2        182.3      3   %
maintenance
Contractual        583.7         554.4       5   %    2,289.4       2,178.6     5   %
revenue
Contract-related   49.3          41.8        18  %    187.0         165.6       13  %
maintenance
Commercial         197.4         200.3       (1  )%   772.8         722.6       7   %
rental
Other              19.1          16.7        14  %    72.0          69.1        4   %
Fuel               268.2        261.3      3   %    1,084.2      1,082.5    —   %
Total Fleet
Management         1,117.7       1,074.7     4   %    4,405.3       4,218.3     4   %
Solutions
Supply Chain       575.3         565.3       2   %    2,280.6       2,206.0     3   %
Solutions
Eliminations       (109.4    )   (98.9   )   (11 )%   (428.9    )   (373.8  )   (15 )%
Total revenue      $ 1,583.5    1,541.1    3   %    $ 6,257.0    6,050.5    3   %
                                                                                
                                                                                
Operating
Revenue: *
Fleet Management   $ 849.5       813.3       4   %    $ 3,321.2     3,135.9     6   %
Solutions
Supply Chain       489.1         471.8       4   %    1,944.5       1,857.5     5   %
Solutions
Eliminations       (51.0     )   (48.1   )   (6  )%   (199.3    )   (178.8  )   (11 )%
Total operating    $ 1,287.6    1,237.0    4   %    $ 5,066.3    4,814.6    5   %
revenue
                                                                                
                                                                                
Business segment
earnings:
Earnings from
continuing
operations
before income
taxes:
Fleet Management   $ 86.0        73.8        17  %    $ 307.6       265.7       16  %
Solutions
Supply Chain       31.0          25.5        22  %    115.2         104.9       10  %
Solutions
Eliminations       (8.6      )   (7.1    )   (21 )%   (29.3     )   (24.2   )   (21 )%
                   108.4         92.2        18  %    393.6         346.4       14  %
Unallocated
Central Support    (10.5     )   (11.1   )   6   %    (42.3     )   (42.5   )   —   %
Services
Non-operating      (7.9      )   (4.7    )   (68 )%   (31.4     )   (18.7   )   (68 )%
pension costs
Restructuring
and other          (8.2      )   (3.3    )   NM       (16.7     )   (5.8    )   NM
charges, net and
other items
Earnings from
continuing
operations
before income      81.8          73.1        12  %    303.1         279.4       8   %
taxes
Provision for      26.9         25.4       (6  )%   102.2        108.0      5   %
income taxes
Earnings from
continuing         $ 54.9       47.7       15  %    $ 200.9      171.4      17  %
operations
                                                                                    
* Non-GAAP financial measure; see reconciliation to closest GAAP financial measure
included within this release.

Note: Amounts may not be additive due to rounding.
                                                                                    

                                                                           
RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION - UNAUDITED

Periods ended December31, 2012 and2011

(Dollars in millions)
                                                                               
                 Three Months                       Twelve Months
                 2012         2011       B(W)     2012         2011         B(W)
                                                                               
Fleet
Management
Solutions
                                                                               
Total revenue    $ 1,117.7     1,074.7     4   %    $ 4,405.3     4,218.3      4   %
Fuel revenue     (268.2    )   (261.3  )   3   %    (1,084.2  )   (1,082.5 )   —   %
Operating        $ 849.5      813.3      4   %    $ 3,321.1    3,135.9     6   %
revenue *
                                                                               
Segment
earnings         $ 86.0       73.8       17  %    $ 307.6      265.7       16  %
before income
taxes
                                                                               
Earnings
before income    7.7       %   6.9     %            7.0       %   6.3      %
taxes as % of
total revenue
                                                                               
Earnings
before income
taxes as % of    10.1      %   9.1     %            9.3       %   8.5      %
operating
revenue*
                                                                               
                                                                               
Supply Chain
Solutions
                                                                               
Total revenue    $ 575.3       565.3       2   %    $ 2,280.6     2,206.0      3   %
Subcontracted    (86.1     )   (93.5   )   (8  )%   (336.1    )   (348.5   )   (4  )%
transportation
Operating        $ 489.1      471.8      4   %    $ 1,944.5    1,857.5     5   %
revenue *
                                                                               
Segment
earnings         $ 31.0       25.5       22  %    $ 115.2      104.9       10  %
before income
taxes
                                                                               
Earnings
before income    5.4       %   4.5     %            5.1       %   4.8      %
taxes as % of
total revenue
                                                                               
Earnings
before income
taxes as % of    6.3       %   5.4     %            5.9       %   5.6      %
operating
revenue*
                                                                               
                                                                               
Memo:
Dedicated
services         $ 289.4       267.0       8   %    $ 1,137.4     1,027.2      11  %
operating
revenue *
Dedicated
services         33.4         48.1       (31 )%   157.7        165.8       (5  )%
subcontracted
transportation
Dedicated
services total   322.8        315.2      2   %    1,295.1      1,193.0     9   %
revenue
                                                                               
Fuel costs       $ 65.9       59.9       (10 )%   $ 258.9      223.7       (16 )%
                                                                                   
* Non-GAAP financial measure.

Note: Amounts may not be additive due to rounding.
                                                                                   

                                                           
RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION - UNAUDITED

KEY PERFORMANCE INDICATORS
                                                                 
                                                                 Change
                                                                 2012/2011
              Three months ended        Year ended               Three   Twelve
              December 31,              December 31,             Months   Months
              2012         2011         2012        2011
                                                                          
Full
service
lease
Average       122,100      120,400      121,900     116,200      1%       5%
fleet count
End of
period        122,400      121,000      122,400     121,000      1%       1%
fleet count
Miles/unit
per day       1.6     %    (2.6    )%   1.2     %   (0.1    )%   420      130
change - %                                                       bps      bps
^ (a)
                                                                          
                                                                          
Commercial
rental
Average       38,600       39,800       40,100      36,600       (3)%     10%
fleet count
End of
period        38,000       39,600       38,000      39,600       (4)%     (4)%
fleet count
Rental
utilization   78.2    %    78.9    %    74.9    %   77.6    %    (70)     (270)
- power                                                          bps      bps
units
Rental rate                                                      (450)    (580)
change - %    3.2     %    7.7     %    4.3     %   10.1    %    bps      bps
^ (b)
                                                                          
                                                                          
Customer
vehicles
under
contract
maintenance
Average       37,500       35,100       36,500      34,100       7%       7%
fleet count
End of
period        37,800       35,300       37,800      35,300       7%       7%
fleet count
                                                                          
                                                                          
SCS
Average
fleet count   11,500       11,300       11,500      11,100       2%       4%
^(c)
                                                                          
                                                                          
Used
vehicle
sales (UVS)
Average UVS   9,500        5,700        8,800       5,200        67%      69%
inventory
End of
period        9,200        6,300        9,200       6,300        46%      46%
fleet count
Used
vehicles      5,400        4,200        22,200      16,900       29%      31%
sold
UVS pricing
change - %
^ (d)
Tractors      (9      )%   29      %    —       %   37      %
Trucks        2       %    —       %    2       %   23      %
                                                                          

Notes:

    Represents the percentage change compared to prior year period in miles
(a) driven per vehicle per workday on US lease power units (restated to
    exclude vehicles not yet earning revenue and vehicles no longer earning
    revenue).
(b) Represents percentage change compared to prior year period in average
    global rental rate per day on power units using constant currency.
(c) These vehicle counts are also included within the average fleet counts for
    full service lease and commercial rental.
(d) Represents percentage change compared to prior year period in average
    sales proceeds on used vehicle sales using constant currency.

                                                   
RYDER SYSTEM, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED

(Dollars in millions)
                                                                             
OPERATING REVENUE     Three months ended December     Year ended
RECONCILIATION        31,                             December 31,
                      2012             2011          2012         2011
                                                                    
Total revenue         $  1,583.5        1,541.1       $ 6,257.0     6,050.5
Fuel services and
subcontracted         (354.4      )     (354.8   )    (1,420.2  )   (1,431.0 )
transportation
revenue
Fuel eliminations     58.4             50.7         229.6        195.0    
Operating revenue *   $  1,287.6       1,237.0      $ 5,066.3    4,814.6  
                                                                             

DEBT TO EQUITY         December 31, 2012  % to     December 31,    % to
RECONCILIATION                              Equity    2011             Equity
                                                                       
On-balance sheet debt   $   3,820.8         260%      $  3,382.1       257%
Off-balance sheet
debt - PV of minimum
lease payments and
guaranteed residual     148.0                        64.0        
values under
operating leases for
vehicles ^(a)
Total obligations *     $   3,968.8        270%      $  3,446.1      261%
                                                                       

CASH FLOW RECONCILIATION                             Year ended December 31,
                                                      2012         2011
                                                                    
Net cash provided by operating activities from        $ 1,134.1     1,042.0
continuing operations
Proceeds from sales (primarily revenue earning        412.8         300.2
equipment)
Sale and leaseback of revenue earning equipment       130.2         37.4
Collections on direct finance leases                  71.9         62.2     
Total cash generated *                                1,749.0       1,441.8
Capital expenditures                                  (2,133.2  )   (1,698.6 )
Free cash flow *                                      $ (384.2  )   (256.8   )
                                                                             

RETURN ON CAPITAL RECONCILIATION              Year ended December 31,
                                               2012         2011
                                                             
Net earnings (12-month rolling period)         $ 210.0       169.8
+ Restructuring and other items                16.7          5.7
+ Income taxes                                 90.9         108.4   
Adjusted earnings before income taxes          317.6         284.0
+ Adjusted interest expense ^ (b)              143.4         135.1
- Adjusted income taxes                        (166.6    )   (156.6  )
= Adjusted net earnings for ROC (numerator)    $ 294.3      262.5   
                                                             
Average total debt                             $ 3,707.1     3,078.5
Average off-balance sheet debt                 126.1         77.6
Average shareholders' equity                   1,406.6       1,428.0
Adjustment to equity ^(c)                      (2.9      )   4.2     
Adjusted average total capital (denominator)   $ 5,236.8    4,588.3 
                                                             
Adjusted ROC *                                 5.6       %   5.7     %
                                                                     

Notes: 
(a)      Discounted at the incremental borrowing rate at lease inception.
(b)      Interest expense includes implied interest on off-balance sheet
         vehicle obligations.
(c)      Represents comparable earnings items for those periods.

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

                                                       
RYDER SYSTEM, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED

(In millions, except per share amounts)
                                                          
                 Three Months                             Twelve Months
                 2012                                     2012
                 Reported                 Comparable    Reported                 Comparable
                 Earnings      Adjustment   Earnings *    Earnings      Adjustment   Earnings *
                                                                                     
Revenue          $ 1,583.5    —           $ 1,583.5    $ 6,257.0    —           $ 6,257.0 
                                                                                     
Cost of lease    476.2         —            476.2         1,890.7       —            1,890.7
and rental
Cost of          576.3         (8.2   )     568.1         2,274.1       (8.2    )    2,265.9
services ^(a)
Cost of fuel     206.1         —            206.1         838.7         —            838.7
services
Other
operating        35.0          —            35.0          135.9         —            135.9
expenses
Selling,
general and      198.7         —            198.7         766.7         (0.4    )    766.3
administrative
expenses ^(b)
Gains on
vehicle sales,   (21.4     )   —            (21.4     )   (89.1     )   —            (89.1     )
net
Interest         35.3          —            35.3          140.6         —            140.6
expense
Miscellaneous    (4.5      )   —            (4.5      )   (11.7     )   —            (11.7     )
income, net
Restructuring
and other        —            —           —            8.1          (8.1    )    —         
charges, net ^
(c)
                 1,501.7      (8.2   )     1,493.5      5,954.0      (16.7   )    5,937.3   
Earnings from
continuing
operations       81.8          8.2          90.1          303.1         16.7         319.8
before income
taxes
Provision for
income taxes     (26.9     )   (3.1   )     (30.0     )   (102.2    )   (10.1   )    (112.3    )
^(d)
Earnings from
continuing       54.9         5.1         60.1         200.9        6.6         207.4     
operations
                                                                                     
Tax rate on
continuing       32.9      %                33.3      %   33.7      %                35.1      %
operations
                                                                                     
Earnings per
common share -                                                                  
Diluted:
Continuing       $ 1.07       0.10        $ 1.17       $ 3.91       0.13        $ 4.04    
operations
                                                                                               

                Three Months                            Twelve Months
                 2011                                     2011
                 Reported                 Comparable    Reported                 Comparable
                 Earnings      Adjustment   Earnings *    Earnings      Adjustment   Earnings *
                                                                                     
Revenue          $ 1,541.1    —           $ 1,541.1    $ 6,050.5    —           $ 6,050.5 
                                                                                     
Cost of lease    446.6         —            446.6         1,746.1       —            1,746.1
and rental
Cost of          560.0         —            560.0         2,186.4       —            2,186.4
services
Cost of fuel     207.7         —            207.7         873.5         —            873.5
services
Other
operating        34.1          —            34.1          129.2         —            129.2
expenses
Selling,
general and      202.9         (0.4   )     202.5         771.2         (2.1   )     769.1
administrative
expenses ^ (b)
Gains on
vehicle sales,   (16.6     )   —            (16.6     )   (62.9     )   —            (62.9     )
net
Interest         33.0          —            33.0          133.2         —            133.2
expense
Miscellaneous    (2.6      )   —            (2.6      )   (9.1      )   —            (9.1      )
income, net
Restructuring
and other        2.9          (2.9   )     —            3.7          (3.7   )     —         
charges, net ^
(e)
                 1,468.0      (3.3   )     1,464.7      5,771.1      (5.8   )     5,765.3   
Earnings from
continuing
operations       73.1          3.3          76.4          279.4         5.8          285.2
before income
taxes
Provision for
income taxes     (25.4     )   (0.9   )     (26.3     )   (108.0    )   3.5         (104.5    )
^(f)
Earnings from
continuing       47.7         2.4         50.1         171.4        9.3         180.6     
operations
                                                                                     
Tax rate on
continuing       34.8      %                34.4      %   38.7      %                36.7      %
operations
                                                                                     
Earnings per
common share -                                                                  
Diluted:
Continuing       $ 0.92       0.05        $ 0.97       $ 3.31       0.18        $ 3.49    
operations

Notes regarding adjustments:
(a) Superstorm Sandy vehicle-related losses
(b) Transaction costs associated with the acquisition of Euroway (2012) and
    Hill Hire (2011).
    Restructuring charges for severance and other termination costs due to
(c) workforce reductions and a charge associated with non-essential leased
    facilities assumed in the Hill Hire acquisition.
(d) Tax law change in the U.K., tax benefit related to favorable resolution of
    a tax item from prior periods and tax impact of other comparable items.
(e) Restructuring and other charges for acquisition-related severance and
    equipment contract termination costs.
(f) Tax law change in Michigan and tax impact of other comparable items.
    
* Non-GAAP financial measure.

Note: Amounts may not be additive due to rounding.

Contact:

Ryder System, Inc.
Media:
David Bruce, 305-500-4999
or
Investor Relations:
Bob Brunn, 305-500-4053
 
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