8-K

SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 23, 2003

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)	(IRS Employer Identification No.)

3600 NW 82nd Avenue, Miami, Florida
(Address of Principal Executive Offices) 33166
(Zip Code)

(305) 500-3726
(Registrant’s telephone number, including area code)

Item 7(c)	Exhibits
Exhibit 99.1	Press Release of Ryder System, Inc., dated July 23, 2003, reporting Ryder System, Inc.’s financial results for the quarterly period ended June 30, 2003.
Exhibit 99.2	Presentation made by Ryder System, Inc. for use in connection with a conference call and webcast related to its financial results for the quarterly period ended June 30, 2003.
Item 9.	Regulation FD Disclosure

This information set forth under “Item 9. Regulation FD Disclosure” is intended to be furnished under said Item 9 and also under “Item 12. Results of Operations and Financial Condition” in accordance with SEC Release No. 33-8216. Such information, including the Exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

On July 23, 2003, Ryder System, Inc. (the “Company”) issued a press release reporting its financial results for the quarterly period ended June 30, 2003 (the “Press Release”). The Company also hosted a conference call and webcast related to the Press Release during which a presentation was made on the Company’s financial results for the quarterly period ended June 30, 2003 (the “Presentation”). The Presentation was also made available on the Company’s website. A copy of the Press Release and the Presentation are attached hereto as Exhibits 99.1 and 99.2, respectively.

2

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.

	RYDER SYSTEM, INC. (Registrant)
Date: July 23, 2003	/s/ Tracy A. Leinbach
	Tracy A. Leinbach Chief Financial Officer

3 EX-99.1 3 g83937exv99w1.txt EX-99.1 PRESS RELEASE DATED JULY 23, 2003 Exhibit 99.1 News Release FOR IMMEDIATE RELEASE Contacts: Media: Investor Relations: David Bruce Bob Brunn (305) 500-4999 (305) 500-4053 RYDER ANNOUNCES SECOND QUARTER 2003 RESULTS -Second Quarter 2003 Earnings Increase 18% from Year-Earlier Period- -Supply Chain Operations Drive Earnings Improvement for Second Consecutive Quarter- MIAMI, July 23, 2003 - Ryder System, Inc. (NYSE:R), a global leader in transportation and supply chain management solutions, today announced earnings of $34.7 million for the three months ended June 30, 2003, up 18% compared with $29.5 million in the year-earlier period. Revenue for the second quarter of 2003 was $1.20 billion, down 1% from $1.21 billion in the comparable period last year. Earnings per diluted share (EPS) were $0.55 in the second quarter of 2003, up 17% compared with $0.47 in the year-earlier period. EPS for the period included a $0.01 benefit related to recovery of restructuring and other items. "Ryder increased earnings in the second quarter while also absorbing more than $13 million of additional pension expense," said Ryder Chairman, President and Chief Executive Officer Gregory T. Swienton. "Most notably, the continuous improvement programs introduced last year within our Supply Chain Solutions operations helped deliver a second consecutive quarter of significantly higher earnings. Improved operating performance within Fleet Management Solutions, however, was offset by the impact of that business segment absorbing the majority of this quarter's increased pension expense." Second quarter 2003 revenue was impacted by continuing soft economic conditions in the U.S., which led to reduced transportation miles run within all business segments, and volume reductions within some sectors of the Supply Chain Solutions (SCS) business segment. These conditions in the U.S. were partially offset by higher fuel prices, as well as improvement in the commercial rental product line and the performance of the Company's Canadian, Latin American and Asian operations. Commercial rental revenue for the second quarter of 2003 grew 1 5% compared with the year-earlier period, marking the third consecutive quarter of year-over-year rental revenue improvement. YEAR-TO-DATE OPERATING RESULTS Revenue for the first half of 2003 was $2.39 billion, up 1% from $2.36 billion for 2002. Ryder's earnings before accounting changes for the six months ended June 30, 2003 were $55.6 million, up 20% from $46.3 million for the comparable period of the prior year. EPS, before accounting changes, were $0.88 for the first six months of 2003, up 19% from $0.74 for the same period of 2002. Net earnings for the first half of 2003 were $54.5 million, up 99% from $27.4 million for the year-earlier period. EPS were $0.86 for the first six months of 2003, up 95% from $0.44 for the same period last year. EPS in the first half of 2003 included a $0.02 non-cash charge related to the cumulative effect of a change in accounting for costs associated with the eventual retirement of long-lived assets (primarily related to components of revenue earning equipment), as required by the adoption of Statement of Financial Accounting Standards (SFAS) No. 143. EPS in the year-earlier period included a $0.30 non-cash charge related to the cumulative effect of a change in accounting for goodwill, as required by the adoption of SFAS No. 142. SECOND QUARTER BUSINESS SEGMENT OPERATING RESULTS Ryder's primary measurement of business segment financial performance, Net Before Tax (NBT), allocates Central Support Services to each business segment. 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 specific or short-term capacity needs. In the FMS business segment, dry revenue (revenue excluding fuel) in the second quarter of 2003 was $645.7 million, down 2% compared with $657.0 2 million in the year-earlier period. Dry revenue was affected by favorable foreign currency exchange rates and the impact of ancillary business not renewed. Fuel revenue for the second quarter of 2003 increased 5% compared with the same period in 2002 due to higher fuel prices. Full service lease and programmed maintenance revenue for the second quarter of 2003 was 1% lower than the same period last year because of continued softness in the U.S. economy. However, Ryder's second quarter 2003 commercial rental revenue grew 5% from the year-earlier period. Also in the second quarter 2003, leasing demand showed signs of modest improvement. The FMS business segment's NBT decreased 6% to $52.1 million in the second quarter of 2003, compared with $55.4 million in the same period of 2002. This decrease was related primarily to the second quarter 2003 pension expense increase of nearly $12 million compared with the same period last year, as well as lower U.S. leasing demand. The impact of these items was partially offset by better rental pricing, improvement in used truck sales and carrying costs, lower interest costs, and improvement in operating expenses stemming from Ryder's cost management and process improvement actions. Business segment NBT as a percentage of dry revenue was 8.1% in the second quarter of 2003 compared with 8.4% in the same quarter a year ago. SUPPLY CHAIN SOLUTIONS Ryder's Supply Chain Solutions (SCS) business segment enables customers to improve shareholder value and their customers' satisfaction by enhancing supply chain performance and reducing costs. The solutions involve management of the logistics pipeline as a synchronized, integrated process - from raw material supply to finished goods distribution. By improving business processes and employing new technologies, the flow of goods and cash is made faster and consumes less capital. In the SCS business segment, second quarter 2003 revenue totaled $345.7 million, down 4% from $358.3 million in the comparable period in 2002. Second quarter 2003 operating revenue (revenue excluding freight under management) was $239.5 million, down 5% from $251.3 million in the comparable period a year ago. The decreases were due primarily to volume reductions resulting from slow 3 economic conditions and the non-renewal of certain customer contracts that were not expected to provide adequate future returns. The SCS business segment's NBT was $7.4 million in the second quarter of 2003, an improvement of almost $9.6 million from the loss of $2.2 million in the same quarter of 2002. Business segment NBT as a percentage of operating revenue was 3.1% in the second quarter of 2003 compared with a negative 0.9% in the same quarter of 2002. Consistent with the first quarter 2003, these increases were driven by reduced overhead spending on a global basis and improved operational performance. DEDICATED CONTRACT CARRIAGE Ryder's Dedicated Contract Carriage (DCC) business segment provides customers with vehicles, drivers, management and administrative support, with the assets committed to a specific customer for a contractual term. DCC supports customers with both basic and sophisticated logistics and transportation needs, including routing and scheduling, specialized driver services, and logistical engineering support. In the DCC business segment, second quarter 2003 revenue totaled $128.0 million, essentially flat compared with $127.7 million in the second quarter of 2002. Operating revenue (revenue excluding freight under management) in the second quarter was $127.1 million, also flat compared with $126.7 million in the year-earlier period. The DCC business segment's NBT decreased in the second quarter of 2003 to $8.3 million compared with $8.4 million in the second quarter of 2002. Business segment NBT as a percentage of operating revenue was 6.5% compared with 6.6% in 2002. 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. 4 In the second quarter of 2003, total CSS costs decreased to $55.4 million, from $58.3 million in the year-earlier period. This marked the tenth consecutive quarter of reduced CSS costs. The decreases were attributable to reduced spending across all functional areas. CAPITAL EXPENDITURES Capital expenditures were $413 million for the six months ended June 30, 2003, up 48% compared with $280 million for the same period of 2002. The increase in capital expenditures reflects planned higher vehicle replacements, primarily related to the rental product line. On a full-year basis, capital expenditures are forecasted to total approximately $750 million; this is reduced from an original 2003 plan of $890 million. Capital expenditures for the full year 2002 were $600 million. The decrease in capital spending from planned levels reflects lower leasing demand, and higher than anticipated re-deployments and lease extensions. LEVERAGE AND FREE CASH FLOW On-balance-sheet debt as of June 30, 2003 was reduced by $55.4 million compared with year end. The leverage ratio for on-balance-sheet debt as of June 30, 2003 was 126% compared with 140% at year end. Total obligations including securitization to equity as of June 30, 2003 were 173%, down from 201% at year end. Free cash flow for the first half of 2003 is estimated to be $126.3 million compared with $198.4 million for the year-earlier period. Commenting on Ryder's corporate financial performance, Ryder Chief Financial Officer Tracy A. Leinbach stated, "The financial strategies and disciplines that Ryder put in place have allowed us to realize positive cash flow, strengthen the balance sheet, and ensure efficient access to capital in a difficult economic environment. This financial strength positions us well to capitalize on future opportunities for profitable growth." OUTLOOK Commenting on the Company's outlook, Swienton stated, "Ryder's Supply Chain Solutions business delivered strong earnings performance for the second 5 consecutive quarter. We do, however, expect some third quarter impact from reduced automotive production in that business segment. In Fleet Management Solutions, our commercial rental business was up and leasing demand also showed slight improvement this quarter. In view of the economy, we don't expect a significant increase in leasing demand until there is a better sense among customers that a recovery is underway. Balancing this combination of factors, we are forecasting third quarter EPS to be in the range of $0.59 to $0.62." He continued, "Based on our results for the first half of the year, we are increasing our previous $1.95 to $2.00 full-year EPS forecast to the range of $2.04 to $2.10. Even without significant improvement in the overall economy, there are remaining cost management and process improvement opportunities, particularly in the Fleet Management Solutions segment, that should enable us to achieve this forecast." ABOUT RYDER Ryder provides leading-edge transportation, logistics, and supply chain management solutions worldwide. Ryder's product offerings range from full-service leasing, commercial rental and programmed maintenance of vehicles to integrated services such as dedicated contract carriage and carrier management. Additionally, Ryder offers comprehensive supply chain solutions, consulting, lead logistics management services and e-Business solutions that support customers' entire supply chains, from inbound raw materials and parts through distribution and delivery of finished goods. Ryder serves customer needs throughout North America, in Latin America, Europe and Asia. The National Safety Council selected Ryder to receive the 2002 GREEN CROSS FOR SAFETY Medal - its highest honor - for exemplary commitment to workplace safety and corporate citizenship. For the seventh consecutive year, Ryder was featured in the 2002 Fortune Most Admired Companies survey of corporate reputations. Forbes named Ryder to its "Magnetic 40" as "Best in Transportation and Logistics" for creating a "network of partnerships that can spur growth, innovation and most important, serve customers better." INTERNETWEEK named Ryder as one of the top 100 U.S. companies for effectiveness 6 in using the Internet to achieve tangible business benefits. For the fifth consecutive year, Inbound Logistics recognized Ryder in 2002 as the top third-party logistics provider. Ryder's stock is a component of the Dow Jones Transportation Average and the Standard & Poor's 500 Index. With 2002 revenue of $4.78 billion, Ryder ranks 345th on the Fortune 500. For more information on Ryder System, Inc., visit www.ryder.com. # # # NOTE: CERTAIN STATEMENTS AND INFORMATION INCLUDED IN THIS PRESENTATION ARE "FORWARD-LOOKING STATEMENTS" UNDER THE FEDERAL PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ACCORDINGLY, WE ADVISE THAT THESE FORWARD-LOOKING STATEMENTS BE EVALUATED WITH CONSIDERATION GIVEN TO THE MANY 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, THE COMPETITIVE PRICING ENVIRONMENT APPLICABLE TO THE COMPANY'S BUSINESSES, CUSTOMER RETENTION LEVELS, CHANGES IN CUSTOMERS' BUSINESS ENVIRONMENTS, CHANGES IN MARKET CONDITIONS AFFECTING THE SALE OF USED VEHICLES, ADVERSE CHANGES IN DEBT RATINGS, CHANGES IN ACCOUNTING ASSUMPTIONS, GREATER THAN EXPECTED EXPENSES ASSOCIATED WITH THE COMPANY'S ACTIVITIES AND CHANGES IN GENERAL ECONOMIC CONDITIONS. THIS NEWS RELEASE AND THE RELATED INVESTOR PRESENTATION INCLUDE CERTAIN NON-GAAP FINANCIAL MEASURES AS DEFINED UNDER SEC RULES. AS REQUIRED BY SEC RULES, WE HAVE PROVIDED A RECONCILIATION OF THOSE MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES IN THE APPENDICES TO THIS NEWS RELEASE AND PRESENTATION WHICH ARE AVAILABLE ON THE INVESTORS AREA OF OUR WEBSITE AT WWW.RYDER.COM. CONFERENCE CALL AND WEBCAST INFORMATION: Ryder's second quarter 2003 earnings Webcast is scheduled for Wednesday, July 23, 2003 from 11:00 a.m. to 12:00 noon (Eastern Time). Speakers will be Chairman, President and Chief Executive Officer Gregory T. Swienton and Chief Financial Officer Tracy A. Leinbach. TO JOIN THE CONFERENCE CALL LIVE: Begin 10 minutes prior to the conference by dialing the audio phone number 1-888-398-5319 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: RH5174272 and PASSCODE: RYDER. TO ACCESS AUDIO REPLAYS OF THE CONFERENCE AND VIEW A PRESENTATION OF RYDER'S EARNINGS RESULTS: Dial 1-800-468-0316 and use the PASSCODE: 72303, then view the presentation by visiting the investors area of Ryder's Website at www.ryder.com. 7 RYDER SYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - UNAUDITED Periods ended June 30, 2003 and 2002 (In millions, except per share data)

Three Months Six Months ------------------------- ------------------------- 2003 2002 2003 2002 ----------- -------- ----------- -------- Revenue $ 1,197.4 1,209.3 $ 2,391.8 2,359.2 ----------- -------- ----------- -------- Operating expense 494.8 489.6 1,009.9 963.2 Salaries and employee-related costs 315.1 319.1 627.8 630.9 Freight under management expense 107.1 108.0 212.0 200.2 Depreciation expense 145.5 139.4 286.8 272.4 Gains on vehicle sales, net (4.2) (4.3) (8.3) (6.2) Equipment rental 67.6 87.5 141.3 181.8 Interest expense 21.0 23.9 41.8 48.1 Miscellaneous income, net (3.2) (0.4) (5.6) (2.8) Restructuring and other recoveries, net (0.8) -- (1.1) (1.2) ----------- -------- ----------- -------- 1,142.9 1,162.8 2,304.6 2,286.4 Earnings before income taxes 54.5 46.5 87.2 72.8 Provision for income taxes (19.8) (17.0) (31.6) (26.5) ----------- -------- ----------- -------- Earnings before cumulative effect of changes in accounting principles 34.7 29.5 55.6 46.3 Cumulative effect of changes in accounting principles -- -- (1.1) (18.9) ----------- -------- ----------- -------- Net earnings $ 34.7 29.5 $ 54.5 27.4 =========== ======== =========== ======== Diluted earnings per common share $ 0.55 0.47 $ 0.86 0.44 =========== ======== =========== ======== Weighted average common shares - diluted 63.3 63.0 63.1 62.4 =========== ======== =========== ======== ........ Supplemental earnings per share information: Earnings before recoveries, net and changes in accounting principles $ 0.54 0.47 $ 0.87 0.73 Restructuring and other recoveries, net 0.01 -- 0.01 0.01 ----------- -------- ----------- -------- Earnings before cumulative effect of changes in accounting principles 0.55 0.47 0.88 0.74 Cumulative effect of changes in accounting principles -- -- (0.02) (0.30) ----------- -------- ----------- -------- Net earnings $ 0.55 0.47 $ 0.86 0.44 =========== ======== =========== ========

RYDER SYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS - PRELIMINARY AND UNAUDITED (In millions)

June 30, December 31, 2003 2002 --------- ------------ Assets: Current assets $ 1,044.1 1,024.2 Revenue earning equipment 2,618.7 2,497.6 Operating property and equipment 515.7 530.9 Other assets 678.4 714.3 --------- --------- $ 4,856.9 4,767.0 ========= ========= Liabilities and Shareholders' Equity: Current liabilities (including current portion of long-term debt) $ 950.0 862.1 Long-term debt 1,252.6 1,389.1 Other non-current liabilities (including deferred income taxes) 1,465.9 1,407.6 Shareholders' equity 1,188.4 1,108.2 --------- --------- $ 4,856.9 4,767.0 ========= =========

SELECTED KEY RATIOS

June 30, December 31, 2003 2002 --------- ------------ Debt to equity 126% 140% Total obligations to equity (a) 151% 173% Total obligations to equity, including securitizations (a) 173% 201%

Twelve months ended June 30, ------------------------------ 2003 2002 --------- ------------ Return on average common equity (b) 10.1% 3.3% Return on average assets (b) 2.5% 0.8% Average asset turnover 99.6% 96.6% Return on total capital (b) 6.4% 3.6%

(a) - Total obligations represent debt plus off-balance sheet equipment obligations. (b) - Excludes the effect of accounting changes. RYDER SYSTEM, INC. AND SUBSIDIARIES BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED Periods ended June 30, 2003 and 2002 (In millions)

Three Months Six Months ------------------------------ ----------------------------- 2003 2002 B(W) 2003 2002 B(W) -------- -------- ------- -------- -------- ------ Revenue: Fleet Management Solutions: Full service lease and programmed maintenance $ 449.6 452.1 (0.6%) $ 892.8 899.6 (0.8%) Commercial rental 122.7 116.8 5.1% 229.4 215.8 6.3% Fuel 154.4 146.4 5.5% 330.5 281.1 17.6% Other 73.4 88.1 (16.7%) 158.4 172.0 (7.9%) -------- -------- ------- -------- -------- ------ Total Fleet Management Solutions 800.1 803.4 (0.4%) 1,611.1 1,568.5 2.7% Supply Chain Solutions 345.7 358.3 (3.5%) 679.9 695.4 (2.2%) Dedicated Contract Carriage 128.0 127.7 0.2% 257.3 253.3 1.6% Eliminations (76.4) (80.1) 4.6% (156.5) (158.0) 0.9% -------- -------- ------- -------- -------- ------ Total revenue $1,197.4 1,209.3 (1.0%) $2,391.8 2,359.2 1.4% ======== ======== ======= ======== ======== ====== Business segment earnings: Earnings before income taxes: Fleet Management Solutions $ 52.1 55.4 (6.0%) $ 85.3 92.0 (7.3%) Supply Chain Solutions 7.4 (2.2) NA 14.7 (4.4) NA Dedicated Contract Carriage 8.3 8.4 (1.2%) 15.2 13.4 13.4% Eliminations (8.2) (8.3) 1.2% (16.7) (16.6) (0.6%) -------- -------- ------- -------- -------- ------ 59.6 53.3 11.8% 98.5 84.4 16.7% Unallocated Central Support Services (5.9) (6.8) 13.2% (12.4) (12.8) 3.1% -------- -------- ------- -------- -------- ------ Earnings before restructuring and other recoveries, net and income taxes 53.7 46.5 15.5% 86.1 71.6 20.3% Restructuring and other recoveries, net 0.8 -- NA 1.1 1.2 (8.3%) -------- -------- ------- -------- -------- ------ Earnings before income taxes 54.5 46.5 17.2% 87.2 72.8 19.8% Provision for income taxes (19.8) (17.0) (16.5%) (31.6) (26.5) (19.2%) -------- -------- ------- -------- -------- ------ Earnings before cumulative effect of changes in accounting principles 34.7 29.5 17.6% 55.6 46.3 20.1% Cumulative effect of changes in accounting principles -- -- NA (1.1) (18.9) 94.2% -------- -------- ------- -------- -------- ------ Net earnings $ 34.7 29.5 17.6% $ 54.5 27.4 98.9% ======== ======== ======= ======== ======== ======

RYDER SYSTEM, INC. AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION - UNAUDITED Periods ended June 30, 2003 and 2002 (In millions)

Three Months Six Months ------------------------------- -------------------------------- 2003 2002 B(W) 2003 2002 B(W) ------- ------- ------- -------- -------- ----- Fleet Management Solutions Total revenue $ 800.1 803.4 (0.4%) $1,611.1 1,568.5 2.7% Fuel revenue (154.4) (146.4) (5.5%) (330.5) (281.1) 17.6% ------- ------- ------- -------- -------- ----- Dry revenue $ 645.7 657.0 (1.7%) $1,280.6 1,287.4 (0.5%) ======= ======= ====== ======== ======== ===== Earnings before income taxes $ 52.1 55.4 (6.0%) $ 85.3 92.0 (7.3%) ======= ======= ====== ======== ======== ===== Earnings before income taxes as % of total revenue 6.5% 6.9% 5.3% 5.9% ======= ======= ======== ======== Earnings before income taxes as % of dry revenue 8.1% 8.4% 6.7% 7.1% ======= ======= ======== ======== Supply Chain Solutions Total revenue $ 345.7 358.3 (3.5%) $ 679.9 695.4 (2.2%) Freight Under Management (FUM) expense (106.2) (107.0) 0.7% (210.1) (198.2) (6.0%) ------- ------- ------- -------- -------- ----- Operating revenue $ 239.5 251.3 (4.7%) $ 469.8 497.2 (5.5%) ======= ======= ====== ======== ======== ===== Earnings before income taxes $ 7.4 (2.2) NA $ 14.7 (4.4) NA ======= ======= ====== ======== ======== ===== Earnings before income taxes as % of total revenue 2.1% (0.6%) 2.2% (0.6%) ======= ======= ======== ======== Earnings before income taxes as % of operating revenue 3.1% (0.9%) 3.1% (0.9%) ======= ======= ======== ======== Dedicated Contract Carriage Total revenue $ 128.0 127.7 0.2% $ 257.3 253.3 1.6% Freight Under Management (FUM) expense (0.9) (1.0) 10.0% (1.9) (2.0) 5.0% ------- ------- ------- -------- -------- ----- Operating revenue $ 127.1 126.7 0.3% $ 255.4 251.3 1.6% ======= ======= ====== ======== ======== ===== Earnings before income taxes $ 8.3 8.4 (1.2%) $ 15.2 13.4 13.4% ======= ======= ====== ======== ======== ===== Earnings before income taxes as % of total revenue 6.5% 6.6% 5.9% 5.3% ======= ======= ======== ======== Earnings before income taxes as % of operating revenue 6.5% 6.6% 6.0% 5.3% ======= ======= ======== ========

RYDER SYSTEM, INC. AND SUBSIDIARIES FREE CASH FLOW RECONCILIATION - PRELIMINARY AND UNAUDITED Periods ended June 30, 2003 and 2002 (In millions)

Six Months --------------------- 2003 2002 ------- ------- Cash provided by operating activities $ 408.4 329.0 Changes in the aggregate balance of trade receivables sold - 40.0 Collections on direct finance leases 31.5 32.3 Sales of property and revenue earning equipment 99.3 77.1 Purchases of property and revenue earning equipment (412.9) (280.0) ------- ------- Net free cash flow $ 126.3 198.4 ======= =======

EX-99.2 4 g83937exv99w2.htm EX-99.2 PRESENTATION RELATED TO FINANCIAL RESULTS

Exhibit 99.2

Second Quarter 2003 Earnings Conference Call July 23, 2003

Safe Harbor Language Note: Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995. Accordingly, we advise that these forward-looking statements be evaluated with consideration given to the many 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, the competitive pricing environment applicable to the Company's businesses, customer retention levels, changes in customers' business environments, changes in market conditions affecting the sale of used vehicles, adverse changes in debt ratings, changes in accounting assumptions, greater than expected expenses associated with the Company's activities and changes in general economic conditions.

Contents Second Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook FIN 46 Update Q & A

2nd Quarter Results Earnings per diluted share were $0.55, up from $0.47 in 2Q02 Lease revenue slightly down year-over-year; demand remains slow with signs of modest improvement Continuing year-over-year improvement in commercial rental revenue; improved pricing increasing both revenue and margin Increase in fuel revenue due to higher fuel costs Supply Chain Solutions revenue down as anticipated, although decrease is less than was projected Revenue increases realized in Canada, Latin America and Asia, partially offset by declines in Europe; some benefit from favorable exchange rate changes Overview

2nd Quarter Results (continued) Fleet Management Solutions returns negatively impacted by lower lease revenue and absorption of pension expense increase, partially offset by improved rental and asset management results Supply Chain Solutions returns positively impacted by overhead reductions and improved operational performance globally Dedicated Contract Carriage returns consistent with prior year on flat revenue Asset management activities continue to contribute to improved results with 8% year-over-year reduction in non- revenue earning equipment Strong cost management in overhead areas continues to positively contribute to results Overview

Earnings Per Share Second Quarter Actual Results

Earnings Per Share Year-To-Date Actual Results

Business Segment Second Quarter Fully Allocated ($ Millions) (1) Allocation of Recoveries, Net across business segments was $0.6 to FMS and $0.2 to CSS

Business Segment Year-To-Date Fully Allocated ($ Millions) (1) Allocation of Recoveries, Net across business segments was as follows: FMS - $0.9 in 2003; CSS - $0.2 in 2003 and $1.2 in 2002

Capital Expenditures ($ Millions) Year-To-Date Full Service Lease Commercial Rental Property, Plant & Equipment Acquisitions Other East 53 41 5 0 1 1% 5% 41% 53% Year-To-Date 2003

Capital Expenditures Update Actual 2002 Plan 2003 Revised 2003 Lease 536 664 490.7 Rental 19 153 175 Other 1 8 12.6 PP&E 44 65 71.7 Reduced capital expenditures forecast due to lower lease sales, higher redeployment of used vehicles, and higher term extensions than planned

Free Cash Flow Notes: (1) Includes non-cash restructuring and other recoveries, net and cumulative effect of changes in accounting principles (2) Changes in working capital exclude sale of receivables (3) Presentation includes non-GAAP financial measure as defined by SEC rules. Please refer to the appendix for a reconciliation to the most directly comparable GAAP measure. ($ Millions) Year-To-Date Preliminary

Debt to Equity Ratio Continued and focused emphasis to strengthen the balance sheet ($ Millions) Note: 4Q2002 and beyond includes impact of a pension related equity charge of $227.6 million.

Contents Second Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook FIN 46 Update Q & A

2003 Key Initiatives Focus on cost management and process improvement initiatives continues 2003 new initiatives added an incremental $23 million in pre-tax earnings Maintenance Asset Management Overhead Reduction SCS Margin Improvement Insurance and Safety Other $44 - $49 million 2003 Impact of Implemented Initiatives ($ Millions) Status Update

Contents Second Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook FIN 46 Update Q & A

Asset Management Update Total number of non-revenue earning vehicles of 7,985 is down 706 units or 8% vs. prior year period Not yet earning (NYE) vehicles are 924 No longer earning (NLE) vehicles are 7,061 3,112 of these units are held for sale at the used truck centers Used tractor sales proceeds continue to show signs of improvement for two consecutive quarters, up 6% from 4Q02 The overall number of vehicles sold increased over 5% compared to 1Q03 at 3,399 Note: U.S. only

Asset Management Update Focused efforts in the area of asset management continue to positively impact earnings and strengthen free cash flow Redeployments are flat and total extensions have declined moderately; however, both continue to be higher than plan Note: U.S. only Redeployments Total Extensions Early Replacements Early Terminations 2Q99 790 486 1482 1861 2Q00 1170 579 1082 1857 2Q01 1192 843 404 1806 2Q02 1567 1633 214 1325 2Q03 1573 1496 208 706

Contents Second Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook FIN 46 Update Q & A

Earnings Outlook Increasing full year 2003 forecasted earnings to $2.04 - $2.10 per share. Current projection for EPS is as follows: ($ Earnings Per Share) 1st Half (1) 3rd Qtr 4th Qtr Full Year 2003 Actual/Proj. EPS 0.88 0.59-0.62 0.57-0.60 2.04-2.10 (1) Excludes cumulative effect of change in accounting principle charge of $0.02. Includes restructuring recoveries of $0.01.

Contents First Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook FIN 46 Update Q & A

FIN 46 Update FIN 46, Consolidation of Variable Interest Entities, is an accounting change mandated by the FASB Consolidation of entities required based on exposure to losses, right to residual returns if they occur, or both Effective July 1, 2003 for VIEs created before February 1, 2003 Upon adoption, measure the assets and liabilities transferred to the VIEs at the same amounts at which the assets and liabilities would have been measured had they not been transferred Results in a transition charge for cumulative effect of change in accounting principle Ryder will adopt FIN 46 regarding consolidation of Variable Interest Entities (VIEs) effective July 1, 2003 Relates to consolidation of three VIEs from which the Company leases revenue earning equipment under operating lease arrangements Two VIEs have existed since 1999, while the third VIE has existed since 2001 VIEs being consolidated have been previously disclosed as off-balance sheet debt Estimated after-tax charge in 3Q03 of $0.05 due to the cumulative effect of change in accounting principle Charge primarily represents the difference between rental payments to the VIEs compared to depreciation and interest expense on the VIEs' revenue earning equipment and debt, respectively Charge is expected to reverse over the next three years

FIN 46 Update The Company's balance sheet, effective July 1, 2003, will reflect increased revenue earning equipment of $421 million and increased debt of $414 million No effect on the Company's compliance with financial debt covenants The Company's income statement and cash flow presentation will also change beginning July 1, 2003 as result of VIE consolidation Equipment rental expense will convert to depreciation and interest Operating and free cash flows will increase due to depreciation add-back Cash used in financing activities will increase due to principal payments on VIE debt Full year 2003 equipment rental to these VIEs would have been an estimated $116 million prior to the adoption of FIN 46 After consolidation, depreciation and interest are estimated to be approximately 2/3 and 1/3 of this amount, respectively

Q & A

Appendix Business Segment Detail Free Cash Flow Reconciliation Non-Revenue Earning Equipment FIN 46 - Balance Sheet Detail

Fleet Management Solutions (FMS) ($ Millions) Second Quarter

Fleet Management Solutions (FMS) ($ Millions) Year-To-Date

Supply Chain Solutions (SCS) ($ Millions) Second Quarter

Supply Chain Solutions (SCS) ($ Millions) Year-To-Date

Dedicated Contract Carriage (DCC) ($ Millions) Second Quarter

Dedicated Contract Carriage (DCC) ($ Millions) Year-To-Date

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

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

Free Cash Flow Reconciliation ($ Millions) Year-To-Date Preliminary

Non-Revenue Earning Equipment Not Yet Earning - "NYE" No Longer Earning - "NLE" Total 10,727 Dec 2000 Total 12,040 Mar 2001 Total 10,915 June 2001 Total 10,991 Sept 2001 Total 11,072 Dec 2001 Total 10,361 Mar 2002 Units held for sale 3,485 5,215 5,115 Total 8,832 Mar 2003 Total 8,691 June 2002 Total 8,433 Sept 2002 Status Total 8,131 Dec 2002 3,112 Total 7,985 Jun 2003 Note: U.S. only

FIN 46 - Balance Sheet Detail Balance Sheet Impact of Consolidating VIEs

EX-99.1

                                                                    Exhibit 99.1


                                                           News Release


FOR IMMEDIATE RELEASE

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

                   RYDER ANNOUNCES SECOND QUARTER 2003 RESULTS
      -Second Quarter 2003 Earnings Increase 18% from Year-Earlier Period-
         -Supply Chain Operations Drive Earnings Improvement for Second
                              Consecutive Quarter-

         MIAMI, July 23, 2003 - Ryder System, Inc. (NYSE:R), a global leader in
transportation and supply chain management solutions, today announced earnings
of $34.7 million for the three months ended June 30, 2003, up 18% compared with
$29.5 million in the year-earlier period. Revenue for the second quarter of 2003
was $1.20 billion, down 1% from $1.21 billion in the comparable period last
year.

         Earnings per diluted share (EPS) were $0.55 in the second quarter of
2003, up 17% compared with $0.47 in the year-earlier period. EPS for the period
included a $0.01 benefit related to recovery of restructuring and other items.

         "Ryder increased earnings in the second quarter while also absorbing
more than $13 million of additional pension expense," said Ryder Chairman,
President and Chief Executive Officer Gregory T. Swienton. "Most notably, the
continuous improvement programs introduced last year within our Supply Chain
Solutions operations helped deliver a second consecutive quarter of
significantly higher earnings. Improved operating performance within Fleet
Management Solutions, however, was offset by the impact of that business segment
absorbing the majority of this quarter's increased pension expense."

         Second quarter 2003 revenue was impacted by continuing soft economic
conditions in the U.S., which led to reduced transportation miles run within all
business segments, and volume reductions within some sectors of the Supply Chain
Solutions (SCS) business segment. These conditions in the U.S. were partially
offset by higher fuel prices, as well as improvement in the commercial rental
product line and the performance of the Company's Canadian, Latin American and
Asian operations. Commercial rental revenue for the second quarter of 2003 grew



                                                                               1

5% compared with the year-earlier period, marking the third consecutive quarter
of year-over-year rental revenue improvement.

                         YEAR-TO-DATE OPERATING RESULTS

         Revenue for the first half of 2003 was $2.39 billion, up 1% from $2.36
billion for 2002. Ryder's earnings before accounting changes for the six months
ended June 30, 2003 were $55.6 million, up 20% from $46.3 million for the
comparable period of the prior year. EPS, before accounting changes, were $0.88
for the first six months of 2003, up 19% from $0.74 for the same period of 2002.
Net earnings for the first half of 2003 were $54.5 million, up 99% from $27.4
million for the year-earlier period. EPS were $0.86 for the first six months of
2003, up 95% from $0.44 for the same period last year.

         EPS in the first half of 2003 included a $0.02 non-cash charge related
to the cumulative effect of a change in accounting for costs associated with the
eventual retirement of long-lived assets (primarily related to components of
revenue earning equipment), as required by the adoption of Statement of
Financial Accounting Standards (SFAS) No. 143. EPS in the year-earlier period
included a $0.30 non-cash charge related to the cumulative effect of a change in
accounting for goodwill, as required by the adoption of SFAS No. 142.

                SECOND QUARTER BUSINESS SEGMENT OPERATING RESULTS

         Ryder's primary measurement of business segment financial performance,
Net Before Tax (NBT), allocates Central Support Services to each business
segment.

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 specific or short-term capacity needs.

         In the FMS business segment, dry revenue (revenue excluding fuel) in
the second quarter of 2003 was $645.7 million, down 2% compared with $657.0




                                                                               2

million in the year-earlier period. Dry revenue was affected by favorable
foreign currency exchange rates and the impact of ancillary business not
renewed. Fuel revenue for the second quarter of 2003 increased 5% compared with
the same period in 2002 due to higher fuel prices.

         Full service lease and programmed maintenance revenue for the second
quarter of 2003 was 1% lower than the same period last year because of continued
softness in the U.S. economy. However, Ryder's second quarter 2003 commercial
rental revenue grew 5% from the year-earlier period. Also in the second quarter
2003, leasing demand showed signs of modest improvement.

         The FMS business segment's NBT decreased 6% to $52.1 million in the
second quarter of 2003, compared with $55.4 million in the same period of 2002.
This decrease was related primarily to the second quarter 2003 pension expense
increase of nearly $12 million compared with the same period last year, as well
as lower U.S. leasing demand. The impact of these items was partially offset by
better rental pricing, improvement in used truck sales and carrying costs, lower
interest costs, and improvement in operating expenses stemming from Ryder's cost
management and process improvement actions. Business segment NBT as a percentage
of dry revenue was 8.1% in the second quarter of 2003 compared with 8.4% in the
same quarter a year ago.

SUPPLY CHAIN SOLUTIONS

         Ryder's Supply Chain Solutions (SCS) business segment enables customers
to improve shareholder value and their customers' satisfaction by enhancing
supply chain performance and reducing costs. The solutions involve management of
the logistics pipeline as a synchronized, integrated process - from raw material
supply to finished goods distribution. By improving business processes and
employing new technologies, the flow of goods and cash is made faster and
consumes less capital.

         In the SCS business segment, second quarter 2003 revenue totaled $345.7
million, down 4% from $358.3 million in the comparable period in 2002. Second
quarter 2003 operating revenue (revenue excluding freight under management) was
$239.5 million, down 5% from $251.3 million in the comparable period a year ago.
The decreases were due primarily to volume reductions resulting from slow




                                                                               3

economic conditions and the non-renewal of certain customer contracts that were
not expected to provide adequate future returns.

         The SCS business segment's NBT was $7.4 million in the second quarter
of 2003, an improvement of almost $9.6 million from the loss of $2.2 million in
the same quarter of 2002. Business segment NBT as a percentage of operating
revenue was 3.1% in the second quarter of 2003 compared with a negative 0.9% in
the same quarter of 2002. Consistent with the first quarter 2003, these
increases were driven by reduced overhead spending on a global basis and
improved operational performance.

DEDICATED CONTRACT CARRIAGE

         Ryder's Dedicated Contract Carriage (DCC) business segment provides
customers with vehicles, drivers, management and administrative support, with
the assets committed to a specific customer for a contractual term. DCC supports
customers with both basic and sophisticated logistics and transportation needs,
including routing and scheduling, specialized driver services, and logistical
engineering support.

         In the DCC business segment, second quarter 2003 revenue totaled $128.0
million, essentially flat compared with $127.7 million in the second quarter of
2002. Operating revenue (revenue excluding freight under management) in the
second quarter was $127.1 million, also flat compared with $126.7 million in the
year-earlier period.

         The DCC business segment's NBT decreased in the second quarter of 2003
to $8.3 million compared with $8.4 million in the second quarter of 2002.
Business segment NBT as a percentage of operating revenue was 6.5% compared with
6.6% in 2002.

                         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.




                                                                               4


         In the second quarter of 2003, total CSS costs decreased to $55.4
million, from $58.3 million in the year-earlier period. This marked the tenth
consecutive quarter of reduced CSS costs. The decreases were attributable to
reduced spending across all functional areas.

CAPITAL EXPENDITURES

         Capital expenditures were $413 million for the six months ended June
30, 2003, up 48% compared with $280 million for the same period of 2002. The
increase in capital expenditures reflects planned higher vehicle replacements,
primarily related to the rental product line. On a full-year basis, capital
expenditures are forecasted to total approximately $750 million; this is reduced
from an original 2003 plan of $890 million. Capital expenditures for the full
year 2002 were $600 million. The decrease in capital spending from planned
levels reflects lower leasing demand, and higher than anticipated re-deployments
and lease extensions.

LEVERAGE AND FREE CASH FLOW

         On-balance-sheet debt as of June 30, 2003 was reduced by $55.4 million
compared with year end. The leverage ratio for on-balance-sheet debt as of June
30, 2003 was 126% compared with 140% at year end. Total obligations including
securitization to equity as of June 30, 2003 were 173%, down from 201% at year
end. Free cash flow for the first half of 2003 is estimated to be $126.3 million
compared with $198.4 million for the year-earlier period.

         Commenting on Ryder's corporate financial performance, Ryder Chief
Financial Officer Tracy A. Leinbach stated, "The financial strategies and
disciplines that Ryder put in place have allowed us to realize positive cash
flow, strengthen the balance sheet, and ensure efficient access to capital in a
difficult economic environment. This financial strength positions us well to
capitalize on future opportunities for profitable growth."

                                     OUTLOOK

         Commenting on the Company's outlook, Swienton stated, "Ryder's Supply
Chain Solutions business delivered strong earnings performance for the second





                                                                               5


consecutive quarter. We do, however, expect some third quarter impact from
reduced automotive production in that business segment. In Fleet Management
Solutions, our commercial rental business was up and leasing demand also showed
slight improvement this quarter. In view of the economy, we don't expect a
significant increase in leasing demand until there is a better sense among
customers that a recovery is underway. Balancing this combination of factors, we
are forecasting third quarter EPS to be in the range of $0.59 to $0.62."

         He continued, "Based on our results for the first half of the year, we
are increasing our previous $1.95 to $2.00 full-year EPS forecast to the range
of $2.04 to $2.10. Even without significant improvement in the overall economy,
there are remaining cost management and process improvement opportunities,
particularly in the Fleet Management Solutions segment, that should enable us to
achieve this forecast."

                                   ABOUT RYDER

         Ryder provides leading-edge transportation, logistics, and supply chain
management solutions worldwide. Ryder's product offerings range from
full-service leasing, commercial rental and programmed maintenance of vehicles
to integrated services such as dedicated contract carriage and carrier
management. Additionally, Ryder offers comprehensive supply chain solutions,
consulting, lead logistics management services and e-Business solutions that
support customers' entire supply chains, from inbound raw materials and parts
through distribution and delivery of finished goods. Ryder serves customer needs
throughout North America, in Latin America, Europe and Asia.

         The National Safety Council selected Ryder to receive the 2002 GREEN
CROSS FOR SAFETY Medal - its highest honor - for exemplary commitment to
workplace safety and corporate citizenship. For the seventh consecutive year,
Ryder was featured in the 2002 Fortune Most Admired Companies survey of
corporate reputations. Forbes named Ryder to its "Magnetic 40" as "Best in
Transportation and Logistics" for creating a "network of partnerships that can
spur growth, innovation and most important, serve customers better."
INTERNETWEEK named Ryder as one of the top 100 U.S. companies for effectiveness



                                                                               6

in using the Internet to achieve tangible business benefits. For the fifth
consecutive year, Inbound Logistics recognized Ryder in 2002 as the top
third-party logistics provider.

         Ryder's stock is a component of the Dow Jones Transportation Average
and the Standard & Poor's 500 Index. With 2002 revenue of $4.78 billion, Ryder
ranks 345th on the Fortune 500.

         For more information on Ryder System, Inc., visit www.ryder.com.

                                      # # #

NOTE: CERTAIN STATEMENTS AND INFORMATION INCLUDED IN THIS PRESENTATION ARE
"FORWARD-LOOKING STATEMENTS" UNDER THE FEDERAL PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995. ACCORDINGLY, WE ADVISE THAT THESE FORWARD-LOOKING STATEMENTS
BE EVALUATED WITH CONSIDERATION GIVEN TO THE MANY 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, THE COMPETITIVE PRICING ENVIRONMENT
APPLICABLE TO THE COMPANY'S BUSINESSES, CUSTOMER RETENTION LEVELS, CHANGES IN
CUSTOMERS' BUSINESS ENVIRONMENTS, CHANGES IN MARKET CONDITIONS AFFECTING THE
SALE OF USED VEHICLES, ADVERSE CHANGES IN DEBT RATINGS, CHANGES IN ACCOUNTING
ASSUMPTIONS, GREATER THAN EXPECTED EXPENSES ASSOCIATED WITH THE COMPANY'S
ACTIVITIES AND CHANGES IN GENERAL ECONOMIC CONDITIONS. THIS NEWS RELEASE AND THE
RELATED INVESTOR PRESENTATION INCLUDE CERTAIN NON-GAAP FINANCIAL MEASURES AS
DEFINED UNDER SEC RULES. AS REQUIRED BY SEC RULES, WE HAVE PROVIDED A
RECONCILIATION OF THOSE MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES
IN THE APPENDICES TO THIS NEWS RELEASE AND PRESENTATION WHICH ARE AVAILABLE ON
THE INVESTORS AREA OF OUR WEBSITE AT WWW.RYDER.COM.


CONFERENCE CALL AND WEBCAST INFORMATION:

Ryder's second quarter 2003 earnings Webcast is scheduled for Wednesday, July
23, 2003 from 11:00 a.m. to 12:00 noon (Eastern Time). Speakers will be
Chairman, President and Chief Executive Officer Gregory T. Swienton and Chief
Financial Officer Tracy A. Leinbach.

     TO JOIN THE CONFERENCE CALL LIVE: Begin 10 minutes prior to the conference
     by dialing the audio phone number 1-888-398-5319 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: RH5174272 and PASSCODE: RYDER.

     TO ACCESS AUDIO REPLAYS OF THE CONFERENCE AND VIEW A PRESENTATION OF
     RYDER'S EARNINGS RESULTS: Dial 1-800-468-0316 and use the PASSCODE: 72303,
     then view the presentation by visiting the investors area of Ryder's
     Website at www.ryder.com.




                                                                               7



                       RYDER SYSTEM, INC. AND SUBSIDIARIES

            CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - UNAUDITED
                      Periods ended June 30, 2003 and 2002
                      (In millions, except per share data)





                                                                                   Three Months                 Six Months
                                                                            -------------------------    -------------------------
                                                                                2003           2002         2003            2002
                                                                            -----------      --------    -----------      --------
                                                                                                               
Revenue                                                                     $   1,197.4       1,209.3    $   2,391.8       2,359.2
                                                                            -----------      --------    -----------      --------

Operating expense                                                                 494.8         489.6        1,009.9         963.2
Salaries and employee-related costs                                               315.1         319.1          627.8         630.9
Freight under management expense                                                  107.1         108.0          212.0         200.2
Depreciation expense                                                              145.5         139.4          286.8         272.4
Gains on vehicle sales, net                                                        (4.2)         (4.3)          (8.3)         (6.2)
Equipment rental                                                                   67.6          87.5          141.3         181.8
Interest expense                                                                   21.0          23.9           41.8          48.1
Miscellaneous income, net                                                          (3.2)         (0.4)          (5.6)         (2.8)
Restructuring and other recoveries, net                                            (0.8)         --             (1.1)         (1.2)
                                                                            -----------      --------    -----------      --------
                                                                                1,142.9       1,162.8        2,304.6       2,286.4

Earnings before income taxes                                                       54.5          46.5           87.2          72.8
Provision for income taxes                                                        (19.8)        (17.0)         (31.6)        (26.5)
                                                                            -----------      --------    -----------      --------
Earnings before cumulative effect of changes in accounting principles              34.7          29.5           55.6          46.3
Cumulative effect of changes in accounting principles                              --            --             (1.1)        (18.9)
                                                                            -----------      --------    -----------      --------
Net earnings                                                                $      34.7          29.5    $      54.5          27.4
                                                                            ===========      ========    ===========      ========


Diluted earnings per common share                                           $      0.55          0.47    $      0.86          0.44
                                                                            ===========      ========    ===========      ========



Weighted average common shares - diluted                                           63.3          63.0           63.1          62.4
                                                                            ===========      ========    ===========      ========
                                                                                                                        ........


Supplemental earnings per share information:

    Earnings before recoveries, net and changes in accounting principles    $      0.54          0.47    $      0.87          0.73
    Restructuring and other recoveries, net                                        0.01         --              0.01          0.01
                                                                            -----------      --------    -----------      --------
    Earnings before cumulative effect of changes in accounting principles          0.55          0.47           0.88          0.74
    Cumulative effect of changes in accounting principles                            --            --          (0.02)        (0.30)
                                                                            -----------      --------    -----------      --------
    Net earnings                                                            $      0.55          0.47    $      0.86          0.44
                                                                            ===========      ========    ===========      ========







                       RYDER SYSTEM, INC. AND SUBSIDIARIES

        CONSOLIDATED CONDENSED BALANCE SHEETS - PRELIMINARY AND UNAUDITED
                                  (In millions)





                                                                                        June 30,          December 31,
                                                                                          2003                2002
                                                                                        ---------         ------------
                                                                                                       
Assets:

       Current assets                                                                   $ 1,044.1            1,024.2
       Revenue earning equipment                                                          2,618.7            2,497.6
       Operating property and equipment                                                     515.7              530.9
       Other assets                                                                         678.4              714.3
                                                                                        ---------          ---------
                                                                                        $ 4,856.9            4,767.0
                                                                                        =========          =========

Liabilities and Shareholders' Equity:

       Current liabilities (including current portion of long-term debt)                  $ 950.0              862.1
       Long-term debt                                                                     1,252.6            1,389.1
       Other non-current liabilities (including deferred income taxes)                    1,465.9            1,407.6
       Shareholders' equity                                                               1,188.4            1,108.2
                                                                                        ---------          ---------
                                                                                        $ 4,856.9            4,767.0
                                                                                        =========          =========





                               SELECTED KEY RATIOS




                                                                                        June 30,          December 31,
                                                                                          2003                2002
                                                                                        ---------         ------------
                                                                                                       
Debt to equity                                                                               126%               140%
Total obligations to equity (a)                                                              151%               173%
Total obligations to equity, including securitizations (a)                                   173%               201%






                                                                                            Twelve months ended
                                                                                                   June 30,
                                                                                        ------------------------------
                                                                                           2003                2002
                                                                                        ---------         ------------
                                                                                                       
Return on average common equity (b)                                                         10.1%               3.3%
Return on average assets (b)                                                                 2.5%               0.8%
Average asset turnover                                                                      99.6%              96.6%
Return on total capital (b)                                                                  6.4%               3.6%





(a) - Total obligations represent debt plus off-balance sheet equipment
      obligations.
(b) - Excludes the effect of accounting changes.






                       RYDER SYSTEM, INC. AND SUBSIDIARIES

               BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED
                      Periods ended June 30, 2003 and 2002
                                 (In millions)




                                                                     Three Months                       Six Months
                                                            ------------------------------    -----------------------------
                                                              2003       2002       B(W)        2003       2002      B(W)
                                                            --------   --------    -------    --------   --------    ------
                                                                                                    
Revenue:
  Fleet Management Solutions:
   Full service lease and programmed maintenance             $ 449.6      452.1      (0.6%)    $ 892.8      899.6     (0.8%)
   Commercial rental                                           122.7      116.8       5.1%       229.4      215.8      6.3%
   Fuel                                                        154.4      146.4       5.5%       330.5      281.1     17.6%
   Other                                                        73.4       88.1     (16.7%)      158.4      172.0     (7.9%)
                                                            --------   --------    -------    --------   --------    ------
      Total Fleet Management Solutions                         800.1      803.4      (0.4%)    1,611.1    1,568.5      2.7%
  Supply Chain Solutions                                       345.7      358.3      (3.5%)      679.9      695.4     (2.2%)
  Dedicated Contract Carriage                                  128.0      127.7       0.2%       257.3      253.3      1.6%
  Eliminations                                                 (76.4)     (80.1)      4.6%      (156.5)    (158.0)     0.9%
                                                            --------   --------    -------    --------   --------    ------
      Total revenue                                         $1,197.4    1,209.3      (1.0%)   $2,391.8    2,359.2      1.4%
                                                            ========   ========    =======    ========   ========    ======

Business segment earnings:
  Earnings before income taxes:
   Fleet Management Solutions                               $   52.1       55.4      (6.0%)   $   85.3       92.0     (7.3%)
   Supply Chain Solutions                                        7.4       (2.2)        NA        14.7       (4.4)       NA
   Dedicated Contract Carriage                                   8.3        8.4      (1.2%)       15.2       13.4     13.4%
   Eliminations                                                 (8.2)      (8.3)      1.2%       (16.7)     (16.6)    (0.6%)
                                                            --------   --------    -------    --------   --------    ------
                                                                59.6       53.3      11.8%        98.5       84.4     16.7%
  Unallocated Central Support Services                          (5.9)      (6.8)     13.2%       (12.4)     (12.8)     3.1%
                                                            --------   --------    -------    --------   --------    ------

  Earnings before restructuring and other recoveries, net
   and income taxes                                             53.7       46.5      15.5%        86.1       71.6     20.3%

  Restructuring and other recoveries, net                        0.8         --         NA         1.1        1.2     (8.3%)
                                                            --------   --------    -------    --------   --------    ------

  Earnings before income taxes                                  54.5       46.5      17.2%        87.2       72.8     19.8%
  Provision for income taxes                                   (19.8)     (17.0)    (16.5%)      (31.6)     (26.5)   (19.2%)
                                                            --------   --------    -------    --------   --------    ------
  Earnings before cumulative effect of changes in
    accounting principles                                       34.7       29.5      17.6%        55.6       46.3     20.1%
  Cumulative effect of changes in accounting principles           --         --         NA        (1.1)     (18.9)    94.2%
                                                            --------   --------    -------    --------   --------    ------
  Net earnings                                              $   34.7       29.5      17.6%    $   54.5       27.4     98.9%
                                                            ========   ========    =======    ========   ========    ======






                       RYDER SYSTEM, INC. AND SUBSIDIARIES

                    BUSINESS SEGMENT INFORMATION - UNAUDITED
                      Periods ended June 30, 2003 and 2002
                                  (In millions)




                                                                 Three Months                          Six Months
                                                      -------------------------------      --------------------------------
                                                       2003          2002       B(W)         2003         2002        B(W)
                                                      -------      -------    -------      --------     --------     -----
                                                                                                     
Fleet Management Solutions

Total revenue                                         $ 800.1        803.4      (0.4%)     $1,611.1      1,568.5       2.7%
Fuel revenue                                           (154.4)      (146.4)     (5.5%)       (330.5)      (281.1)     17.6%
                                                      -------      -------    -------      --------     --------     -----
Dry revenue                                           $ 645.7        657.0      (1.7%)     $1,280.6      1,287.4      (0.5%)
                                                      =======      =======    ======       ========     ========     =====

Earnings before income taxes                           $ 52.1         55.4      (6.0%)       $ 85.3         92.0      (7.3%)
                                                      =======      =======    ======       ========     ========     =====

Earnings before income taxes as % of total revenue        6.5%         6.9%                     5.3%         5.9%
                                                      =======      =======                 ========     ========

Earnings before income taxes as % of dry revenue          8.1%         8.4%                     6.7%         7.1%
                                                      =======      =======                 ========     ========


Supply Chain Solutions

Total revenue                                         $ 345.7        358.3      (3.5%)      $ 679.9        695.4      (2.2%)
Freight Under Management (FUM) expense                 (106.2)      (107.0)      0.7%        (210.1)      (198.2)     (6.0%)
                                                      -------      -------    -------      --------     --------     -----
Operating revenue                                     $ 239.5        251.3      (4.7%)      $ 469.8        497.2      (5.5%)
                                                      =======      =======    ======       ========     ========     =====

Earnings before income taxes                            $ 7.4         (2.2)       NA        $  14.7         (4.4)       NA
                                                      =======      =======    ======       ========     ========     =====

Earnings before income taxes as % of total revenue        2.1%        (0.6%)                    2.2%        (0.6%)
                                                      =======      =======                 ========     ========

Earnings before income taxes as % of operating
  revenue                                                 3.1%        (0.9%)                    3.1%        (0.9%)
                                                      =======      =======                 ========     ========


Dedicated Contract Carriage

Total revenue                                         $ 128.0        127.7       0.2%      $  257.3        253.3       1.6%
Freight Under Management (FUM) expense                   (0.9)        (1.0)     10.0%          (1.9)        (2.0)      5.0%
                                                      -------      -------    -------      --------     --------     -----
Operating revenue                                     $ 127.1        126.7       0.3%      $  255.4        251.3       1.6%
                                                      =======      =======    ======       ========     ========     =====

Earnings before income taxes                          $   8.3          8.4      (1.2%)     $   15.2         13.4      13.4%
                                                      =======      =======    ======       ========     ========     =====

Earnings before income taxes as % of total revenue        6.5%         6.6%                     5.9%         5.3%
                                                      =======      =======                 ========     ========

Earnings before income taxes as % of operating
  revenue                                                 6.5%         6.6%                     6.0%         5.3%
                                                      =======      =======                 ========     ========






                 RYDER SYSTEM, INC. AND SUBSIDIARIES

           FREE CASH FLOW RECONCILIATION - PRELIMINARY AND UNAUDITED
                      Periods ended June 30, 2003 and 2002
                            (In millions)




                                                                                  Six Months
                                                                            ---------------------
                                                                              2003          2002
                                                                            -------       -------
                                                                                      
Cash provided by operating activities                                       $ 408.4         329.0
Changes in the aggregate balance of trade receivables sold                        -          40.0
Collections on direct finance leases                                           31.5          32.3
Sales of property and revenue earning equipment                                99.3          77.1
Purchases of property and revenue earning equipment                          (412.9)       (280.0)
                                                                            -------       -------
Net free cash flow                                                          $ 126.3         198.4
                                                                            =======       =======

EX-99.2

EX-99.2 Presentation related to Financial Results