Message to Shareholders

Message to Shareholders

“We’ve entered 2012 as a much stronger company, and are confident that we will be able to increase sales in all of our business segments and deliver double-digit earnings growth again this year.”


GREG SWIENTON
Chairman and Chief Executive Officer

In 2011, Ryder delivered double-digit growth in both revenue and earnings despite economic conditions that remained volatile. Total revenue for the full-year 2011 rose 18% and exceeded $6 billion for the first time since 2008. Net earnings improved 44% to $170 million in 2011. Our transactional products, including commercial rental and used vehicle sales, continued to perform exceptionally well, showing improvement not only in volumes, but also commanding better pricing. In our contractual business, we saw significant organic improvement in Supply Chain Solutions, and our largest Fleet Management Solutions product line, full service lease, began to show organic fleet growth in the latter part of the year. Dedicated Contract Carriage earnings also increased modestly in the year. Our 2011 performance benefited from the effective integration and financial performance of five accretive acquisitions completed since December of 2010. Additionally, we achieved a positive spread between our return on capital and cost of capital, and improved our return on equity by 350 basis points to 11.9%.

We’ve entered 2012 as a much stronger company, and are confident that we will be able to increase sales in all of our business segments and deliver double-digit earnings growth again this year. We expect to realize increased revenue and deliver solid earnings leverage, even with only modest economic improvement anticipated for 2012. We anticipate both our market position and financial performance to benefit from Ryder’s continued focus on tactical execution. However, our greatest opportunity for growth comes from leveraging the macro trends that are making Ryder’s portfolio of outsourced solutions increasingly attractive to businesses whose primary expertise is not in transportation and logistics. As we continue to focus on taking advantage of these secular trends to grow the business, we fully expect the results of our multi-year work will become increasingly apparent to our investors. We’re well prepared to deliver positive earnings in any environment, but our team is particularly eager to demonstrate what we can do in an economy that is recovering more normally and, in fact, growing. We are extremely well positioned to take advantage of an improving economy and significant trends to reach new heights in revenue growth and earnings. We trust you will agree that together, we have much to look forward to in the months and years ahead. Thank you for your ongoing interest in and commitment to Ryder.

Sincerely,



Greg Swienton

Chairman and Chief Executive Officer