2011 AnnuAl Review
2011 AnnuAl Review
2011 ANNuAL REvIEW
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 seg-
ments and deliver double-
digit earnings growth again
this year.”
GREG SWIENTON
Chairman and Chief Executive Officer
2011 HIGHLIGHTS
•
Improved comparable earnings per diluted share
from continuing operations by 57% on operating
revenue increase of 16%
•
Increased return on capital to 5.7% from 4.8% in
the prior year
•
Delivered total shareholder returns that were more
than 1.5x the returns of the S&P 500 Index
•
Realized double-digit revenue growth in all three
business segments
•
Successfully integrated five immediately accretive
acquisitions adding more than 800 new contractual
customers across all our business segments
In 2011, Ryder delivered double-digit growth in both revenue and earnings despite economic conditions that re-
mained 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 command-
ing 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 perfor-
mance 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 capi-
tal, 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 tacti-
cal 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 trans-
portation 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 advan-
tage 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
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TRENDS DRIvING DEMAND
“All of our businesses benefit from long-term, secular
trends that will lead to further outsourcing over time.
These trends include increased complexity and higher
operating costs of vehicle technology, increased capi-
tal costs for new vehicles, a more constrained credit
environment and the dynamic nature of supply chains
today.”
ROBERT SANCHEZ
President and Chief Operating Officer, Ryder System, Inc.
LONG-TERM DYNAMICS AND MARKET TRENDS DRIvING OuTSOuRCING
Ryder is a leader in each of its primary transportation and supply chain solu-
tions offerings. Significant opportunities exist for expanding the market for our
solutions due to the relatively low levels of outsourcing by customers in each
of these categories. These opportunities are supported by a number of macro-
trends that point to increased use of outsourcing among the vast number of
companies that currently manage these functions and processes in-house.
• Increased vehicle Cost and Complexity
Newer EPA-mandated clean-burning engine technologies have resulted
in substantially higher initial fleet costs, more maintenance complexity,
including inventory requirements for specialized parts and fluids, as well
Ryder manages over 30 million square
feet of warehouse space and provides
distribution management services ranging
from network design to managing the
facilities themselves.
as higher operating costs.
Driver and Maintenance Technician Shortage
•
As a generation of baby-boomers continues to transition into retirement,
finding safe and reliable professional drivers and qualified technicians
presents a challenge for many companies, especially those which are not
positioned to support the unique training and development required to
keep these critical roles operating at the top of their game.
•
Rapidly Changing Global Supply Chains
Recent natural disasters, such as the tsunami in Japan, have caused
companies to focus on risk management of their supply chains. The more
complicated the supply chain or the product requirements, the greater
the need for companies to turn to the expertise of supply chain providers.
Greater Management and Oversight Requirements – Increases in domes-
tic and international regulatory requirements, safety and cargo security
Ryder sells the majority of its used vehicles
through a nationwide network of 57 retail
sales centers.
concerns, environmental concerns, risk and insurance, and many other
responsibilities require substantial management time and monitoring of
new developments to stay up-to-date and in compliance.
•
Greater Management and Oversight Requirements
Increases in domestic and international regulatory requirements, safety
and cargo security concerns, environmental concerns, risk and insurance,
and many other responsibilities require substantial management time and
monitoring of new developments to stay up-to-date and in compliance.
ACCELERATING PROFITABLE GROWTH IN 2012 AND BEYOND
For nearly eight decades, Ryder has been developing and refining its solu-
tions by focusing in on emerging customer needs, executing in real-world
conditions, monitoring performance, and implementing timely process im-
provements. With the benefit of that heritage, a solid foundation, and the belief
that the worst of the external economic conditions are now behind us, Ryder is
very well positioned to accelerate profitable growth now and in the future.
•
Maintained Size of Sales Force through Downturn
Our sales force is intact and prepared to accelerate growth. Through the
most challenging economic downturn, freight recession, and selling en-
vironment in memory, Ryder chose to maintain the size of its sales force,
which is very well trained and attuned to customer needs and the applica-
bility of Ryder’s solutions.
•
Investing in Technology, Innovation and Product Development
Ryder continues to differentiate its offerings with investments in unique
technologies. For instance, Ryder continues to expand the number of
vehicles equipped with web-enabled customer-facing FleetCare technol-
ogy for monitoring fleet metrics and performance data, and GPS/computer
integrated RydeSmart® technology to lower operating costs and improve
customer service.
•
Organized to Deliver unmatched value in Specific Market Segments
Ryder has segmented and targeted its focus on specific industries and
solution applications where the Company is best positioned to leverage
its proven ability in the areas of operational execution and real-world
innovation.
•
Primed to Extend Our Lead in the Recovery
For many years, through every kind of business environment, Ryder has
prepared for the opportunities that are now at our door. For the reasons
outlined here and many more, Ryder stands ready to take advantage
of opportunities to accelerate profitable growth in both the existing and
emerging markets for outsourced transportation and supply chain man-
agement solutions.
Ryder manages over $4 billion in freight
moves on their customers’ behalf.
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KEY PERFORMANCE INDICATORS
BETTER uSED vEHICLE SALES PERFORMANCE
Improved pricing resulted from strong demand combined with lower inventory levels
2011 AnnuAl Review
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“
The early-cycle indicators in our business continued
to be strong throughout 2011. Moderately better
economic conditions combined with increased
outsourcing demand resulted in improvements in
almost all key performance indicators. Commercial
rental, which is typically the strongest leading indicator
of future contractual revenue growth, was robust and
led to organic growth in our lease fleet in the second
half of the year. We also saw improved volumes in our
Supply Chain Solutions business.”
DENNIS COOKE
President, Global Fleet Management Solutions
IMPROvED COMMERCIAL RENTAL PERFORMANCE
Improved demand and higher purchase costs for new vehicles are driving increased usage and fleet
growth in rental
IMPROvED FuLL SERvICE LEASE DEMAND
Acquisitions, strong lease sales activity and better retention led to lease fleet growth in 2011
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SEGMENTS
“
Across Ryder’s range of solutions, we’ve developed
deep expertise in specific functional areas and key
industries. We design proactive solutions to specifically
fit our customers’ needs, whether in food and bever-
age, oil and gas, automotive, high-tech, retail or other
industries. Our people ensure great execution by know-
ing and caring about what’s most important to the cus-
tomer.”
JOHN WILLIFORD
President, Ryder Global Supply Chain Solutions
FLEET MANAGEMENT SOLuTIONS
Ryder’s Fleet Management Solutions (FMS) business segment provides full
service leasing and rental of commercial trucks, tractors, and trailers; contract
maintenance services; and a variety of fleet support services designed to help
meet customers’ insurance, fuel, safety, and regulatory reporting needs.
• Full Service Lease, our largest product line, is a lease package offered
as part of a long-term contract that includes vehicle sourcing, financing,
and maintenance as well as a variety of fleet support services, including
onboard telematics and web-based fleet management tools.
• Commercial Rental provides customers with rental trucks on a short-
term basis to meet peak or seasonal needs for supplemental capacity.
• Contract Maintenance is a service solution that includes preventive
maintenance, vehicle repairs, and 24/7 roadside assistance for customers
with non-Ryder owned vehicles. Contract-Related Maintenance provides
maintenance services to contractual customers who require additional
maintenance beyond the services included in their contracts.
• used vehicle Sales provides customers with access to one of the
world’s largest selections of used trucks, tractors, and trailers, searchable
online in English, French and Spanish, and sold through our network of
more than 57 Used Vehicle Sales Centers and through export channels.
In 2011, FMS offered customers more flexible options for taking advantage of
Ryder’s expertise, including:
• Fleet Plan is a solution that offers private fleet operators a convenient
low-risk way to transition to outsourcing. With Fleet Plan, Ryder pur-
chases or facilitates the purchase of the customer’s fleet – and then takes
responsibility for managing, maintaining, and optimizing it.
• On-Site Maintenance enables customers to have a dedicated service
operation right at their premises to deliver all the advantages of profes-
sional maintenance, state-of-the-art diagnostic and repair equipment,
reporting system, and predictable monthly maintenance expenses.
• Flex-to-Green provides a flexible three-year lease that enables cus-
tomers to transition to alternative fuel vehicles anytime during the lease
period. Customers can start out with a standard vehicle and transition to
an alternative fuels vehicle for a full term at any point following the first
full year of their lease through the remaining months of the lease term.
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2011 PROGRESS
In 2011, FMS delivered a very strong 45% increase in pre-tax earnings on
operating revenue growth of 10%. Our commercial rental performance im-
proved as a result of increased market demand on a 23% larger average fleet
and higher pricing. Used vehicle sales also improved as a result of higher
pricing. Throughout the year we continued to invest and position the FMS
business to take advantage of favorable macro trends toward transportation
outsourcing in the marketplace. FMS closed on four strategic acquisitions to
complement the ten previous FMS acquisitions the Company has made over
the past decade. These acquisitions expand our FMS presence in key areas
of the western U.S. and in the U.K. Ryder acquired Bradford, England-based
Hill Hire plc, an independently run and wholly owned subsidiary of Lloyds
Banking Group and UK market leader in commercial truck leasing, rental and
maintenance. In total, the acquired business added nearly $150 million in an-
nualized revenue to Ryder’s FMS business segment and approximately 400
contractual customers. This acquisition was significantly accretive to earnings
in the latter half of 2011.
FMS continues to expand its network. During the year, the 16th Southern
California Ryder service facility opened in Ventura, as well as three new used
vehicle sales facilities – two in California and one in Orlando, Florida. Ryder
also updated and refreshed its rental fleet adding approximately 9,000 new
trucks, tractors and trailers to serve the needs of its nearly 40,000 rental
customers, globally.
FMS is a market leader in its primary product lines, serving both large and
small private fleets in the U.S., Canada, the United Kingdom and Germany.
Differentiated by nearly eight decades of process refinements and a net-
work of more than 800 maintenance facilities, FMS leverages its physical
infrastructure, technology, processes and expertise to deliver efficiency, in-
novation and economies of scale to more than 14,000 contractual customers.
Ryder continues to build on its groundbreaking heavy-duty natural gas truck
rental and leasing project with San Bernardino Associated Governments
(SANBAG) Board in Southern California. This first ever, heavy-duty natural
gas vehicles were being deployed into a large commercial truck rental and
leasing operation. With $19.3 million in state and federal funding secured
by SANBAG to implement the project, Ryder placed and took delivery of
one of the largest-ever orders of more than 200 heavy-duty natural gas
powered trucks. To support the fueling and maintenance of its natural gas
vehicles, Ryder upgraded two of its existing maintenance facilities to be
properly equipped for the indoor servicing of natural gas vehicles – Rancho
Dominguez, California and Tucson, Arizona. The company is in the process
of converting additional facilities in the coming months.
reduce transportation costs, while meeting sustainability objectives, in 2011
Ryder also launched a new alternative fuels website at www.ryder.com/
alternativefuels.
SuPPLY CHAIN SOLuTIONS
Ryder’s Supply Chain Solutions (SCS) business segment provides com-
prehensive logistics and supply chain management services, including:
distribution management, transportation management, dedicated contract
carriage, and professional services.
• Distribution Management includes order fulfillment, inbound mate-
rial and outbound product support, warehouse and distribution center
operations, reverse logistics, and value-added services such as kitting,
packaging and assembly.
• Transportation Management includes freight procurement and carrier
management, shipment planning and execution, freight brokerage, and
freight bill audit and payment.
• Dedicated Contract Carriage (DDC) provides a turnkey transportation
service that includes vehicles, drivers, maintenance, routing and sched-
uling, management and administrative support. DCC combines Ryder’s
equipment know-how with drivers and additional management services
to provide customers with a dedicated transportation solution designed to
increase their overall competiveness. Ryder’s DCC product is custom-
ized to meet the unique and specific demands of each customer. The
solution is especially attractive to companies that require time-sensitive
deliveries, as well as specialized equipment and material handling
capabilities. Managed as part of the SCS organization, DCC operates
primarily in North America.
• Professional Services include strategic consulting, supply chain solu-
tions engineering, network modeling and optimization, and total landed
cost analysis, among other services.
• Integrated Offerings include our origin/destination services which man-
ages the distribution and flow of goods from Asia to North America, as
well as combinations of these four solutions above.
Differentiated by its ability to deliver better operational execution and proac-
tive solutions in real-world settings, SCS leverages its deep expertise by
focusing on key vertical industry sectors including Automotive, High-Tech,
Retail/Consumer Packaged Goods (CPG), and Industrial. SCS manages
more than 30 million square feet of warehouse space globally and contracts
with more than 1,500 outside providers of air, ground, rail, and ocean trans-
To help customers and fleet owners better understand how they can
portation services.
Additionally, SCS concentrates on developing a critical mass of interrelated
operations and capabilities to serve the current and fast-emerging needs of
more than 450 contractual customers in high potential geographies, including
the United States, Canada, Mexico, and Asia.
2011 PROGRESS
In 2011, SCS generated a 47% increase in pre-tax earnings and a 28% in-
crease in operating revenue. This strong performance was driven by organic
growth, and growth resulting from the Total Logistic Control (TLC) acquisition,
which Ryder acquired in late 2010. The acquisition, which was accretive to
earnings in 2011, added approximately $250 million in annualized revenue to
Ryder’s SCS business. Ryder gained 31 TLC facilities representing more than
11 million square feet of strategically placed dry and temperature-controlled
warehousing. It also accelerated our capabilities and growth prospects in the
CPG industry sector, which has been a strategic target of growth for the SCS
business.
In 2011, DCC achieved a 21% increase in operating revenue, and remained
profitable due to the acquisition of The Scully Companies in January 2011.
The Scully acquisition added approximately $65 million of DCC business, 17
customers, and 25 locations throughout the western United States. DCC also
benefitted from the pass-through of higher fuel costs.
In 2011, Ryder expanded its reverse logistics capability to include a co-loca-
tion solution. The new offering integrates forward and reverse logistics in the
same facility to further optimize the returns process and drive greater value
recovery of returned assets. By co-locating the distribution management of
finished goods with returns processes such as technical repair, refurbishment,
and repackaging in the same facility, this solution offers companies the ability
to achieve greater speed to shelf, visibility, and cost-savings. Ryder’s reverse
logistics capability consists of a full suite of integrated reverse logistics and IT
solutions to handle the management of returned goods from end to end.
Ryder Ascent Logistics Singapore and Ryder Supply Chain Solutions Asia –
part of Ryder’s Supply Chain Solutions division – were certified as Third Party
Logistics Providers (3PL) in the Customs-Trade Partnership against Terrorism
(C-TPAT). C-TPAT is a joint U.S. government-business initiative supported
by the Department of Homeland Security and U.S. Customs and Border
Protection that promotes global supply chain security and reduces border
vulnerabilities.
Ryder was awarded three anti-terrorism certifications for its Asia and Trans-
Pacific logistics operations. These certifications enhance Ryder’s existing
anti-terrorism certifications for supply chain operations in North America.
This page includes certain non-GAAP financial measures that are reconciled
in Ryder’s Form 10-K.
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OuR PEOPLE
“
We are a service provider of outsourced transportation
and logistics solutions. People are the primary differen-
tiator in our business. Our proven processes and tech-
nologies are important to our success, but ultimately,
it is the expertise, character and quality of our people
that enable Ryder to be a highly trusted leader in our
industry.”
GREG GREENE
Executive Vice President and Chief Administrative Officer
Ryder’s value comes from understanding a customer‘s business and then
using our deep expertise to bundle and configure a wide range of innovative
products and services in ways that exceed customer expectations. By com-
bining our employees’ insights with our proven processes and technologies,
we are able to innovate and execute consistently in real world conditions,
and that’s critically important to our customers who rely on us to bring them
continuous improvement and efficiency. We continue to place a high prior-
ity on reducing inefficient processes and improving operating efficiency, so
people in positions all across our company can leverage their individual
expertise.
OPTIMIZING EMPLOYEE POTENTIAL
In recent years, we established a formal leadership competency model
centered on the four dimensions of character, judgment, relationship and
results. Through 2011, we continued to make investments in training and de-
velopment, as well as new talent management processes and technologies
to unlock the full potential, productivity and efficiency of our team of nearly
28,000 employees. These initiatives help ensure that we are able to recruit,
develop and retain the diverse talents, viewpoints and expertise we need
today and in the future.
DRIvING BuSINESS RESuLTS THROuGH DIvERSITY & INCLuSION
We believe that the best solutions come from the most diverse working
groups collaborating in an inclusive environment. To further the development
and quality of our industry-leading talent, we formed a Diversity & Inclusion
Council that’s led by our Chairman & CEO Greg Swienton, and includes a
cross section of representatives from various functional areas, management
levels, and geographies. In 2011, we held our first-ever Women’s Leadership
Forum to ensure that we are addressing factors that affect the attractiveness
of our industry and business as a place where women can enjoy a long, pro-
ductive, well-balanced and rewarding career.
HIRING OuR HEROES
One of our many people-related initiatives that we are particularly proud of
is our increased focus on hiring military Veterans. Ryder continues to benefit
from hiring talented military Veterans and drawing on their distinct logistical,
mechanical, and leadership skills. In 2011, we joined the U.S. Chamber of
Commerce Veterans Employment Advisory Council and teamed with several
Veterans support groups to help fill open positions at Ryder. These alliances
are proving to be very productive, resulting in 600 military Veterans hired in
2011.
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SuSTAINABILITY
“
Corporate responsibility starts inside a company and
then radiates outward. That’s why everything at Ryder
starts with good governance and grows from there. We
want to make a difference today that delivers benefits
for the long term, so we are evolving and innovating
across the board: in what we offer, how we develop our
people, what we do to care for the environment, and
how we give back to society.”
BOB FATOvIC
Executive Vice President, Chief Legal Officer
RYDER CARES
At Ryder, corporate responsibility, industry leadership and community in-
volvement are ideals that are put into practice every day by the way we
approach our business and deliver solutions. Our commitment to the highest
standards of safety, security, efficiency, environmental awareness and ethical
business performance, enables Ryder to help customers achieve business
objectives, protect them against potentially harmful impacts, and position
them as involved, high integrity business leaders in our industry and the com-
munities where we work and live.
ENvIRONMENTAL
From the very beginning, Ryder’s business has been based on helping
customers optimize efficiency and eliminate waste in their transportation
functions. Our solutions reduce a customer’s costs while simultaneously
helping to improve their environmental footprint through expert logistics
engineering, cargo optimization, route design, vehicle diagnostics and
maintenance, driver training, waste recovery and recycling, and by providing
flexible, affordable access to low-emission vehicles, including natural gas,
hybrids and other advanced green technologies. Ryder’s combination of
long-standing processes, industry firsts, and cutting edge offerings continues
to gain recognition from media and organizations that track and compare
environmental performance across industries. In 2011, Ryder was named
one of the top green companies in the U.S. by Newsweek magazine for the
second year in a row. We improved from 6th to 5th place in our industry,
and rose three places to No. 111 out of the entire group of 500 businesses
ranked. For the third year in a row, Ryder was also named an Inbound
Logistics Green Supply Chain Partner, selected by the editors as one of the
top 75 companies that demonstrate a deep commitment to green initiatives
and supply chain sustainability for the magazine’s annual “Green 75” is-
sue. For more detailed information on our performance in these areas, visit
Ryder’s online Corporate Sustainability Report.
SAFETY & SECuRITY
Safety is a guiding principle at Ryder, not only for our employees but for
those with whom we share the roads and interact with in the course of our
work. We continue to invest in innovative equipment, training programs and
technologies to improve driver safety, including onboard driver feedback and
lane departure warning systems, and forward-sensing technologies aimed at
reducing driver error and collisions. In the area of security, Ryder continued
to enhance security programs and technologies supporting our vehicle fleets.
Ryder coordinates with anti-terrorism agencies and organizations in each of
our global markets, and all of our logistics operations in the U.S., Canada,
Mexico and Asia are certified under the stringent standards of the Customs-
Trade Partnership Against Terrorism (C-TPAT) Program. We were also once
again honored with a top ten ranking for our industry in Security Magazine’s
annual Security 500 list for 2011.
CAuSES & COMMuNITIES
We’re proud that even through a difficult multi-year downturn, our Ryder team
never lost sight of our obligations to others around the world and in the com-
munities where we work and live. In fact, cause-related giving through the
Ryder Charitable Foundation has increased every year since 2009. Several
years ago, Ryder entered into a $1 million multi-year commitment to become
an Annual Disaster Giving Program partner of the American Red Cross. In
2011, this partnership helped to deliver more than $245 million for Japan
Earthquake recovery, while also funding more than 46 relief operations for
tornado, flood and other relief efforts in 31 states. Ryder’s business opera-
tions also deployed more than 300 trucks supporting six disasters. Overseas,
we marked the celebration of our 40th anniversary of doing business in the
United Kingdom, with a $25,000 pound donation to the Red Cross in the U.K.
In addition to corporate giving, hundreds of Ryder employees made personal
donations or donated volunteer time to help with disaster relief throughout
the year. The Ryder team also met and surpassed its 2011 United Way
Campaign goal, with a combined company and employee contribution of
$511,338, representing an increase of approximately 10% over the previous
year’s commitment.
The company has supported a wide variety of causes through recommenda-
tions from regional Public Affairs Councils established by Ryder near Atlanta,
Detroit and Dallas/Ft. Worth, and our Diversity & Inclusion team. Funding
has been provided to support a number of important issues and community
causes, including medical research and treatment, AIDS vaccines, hunger,
homelessness, child abuse and neglect, minority and women’s causes,
targeted educational scholarships, anti-discriminatory programs and many
others.
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Dollars in millions
2011
2010
Change
OPERATING OVERVIEW
Revenue
$ 6,051
$ 5,136
18%
Operating Revenue(1)
$ 4,815
$ 4,158
16%
Earnings from continuing
operations before income taxes
$ 279
$ 186
50%
Comparable earnings
from continuing operations
before income taxes(1)
Earnings from continuing
operations
Comparable earnings
from continuing operations(1)
$ 285
$ 189
51%
$ 171
$ 125
38%
$ 181
$ 117
54%
2011 AnnuAl Review
Net earnings
$ 170
$ 118
44%
Dollars in millions
FINANCIAL DATA
Total assets
Total debt
$ 7,618
$ 6,652
15%
$ 3,382
$ 2,747
23%
Shareholders equity
$ 1,318
$ 1,404
-6%
Return on average
shareholders equity
11.9%
8.4%
3.5 pts
Adjusted return on capital(1)
5.7%
4.8%
0.9 pts
Debt to equity
Free cash flow(1)
257%
196%
61 pts
$ (257)
$
258
-200%
Capital expenditures paid
$ 1,699
$ 1,070
59%
PER COMMON SHARE DATA
Earnings from continuing
operations – Diluted
Comparable earnings from
continuing operations – Diluted(1)
$ 3.31
$ 2.37
40%
$ 3.49
$ 2.22
57%
Net earnings – Diluted
$ 3.28
$ 2.25
46%
07
08
09
10
11
07
08
09
10
11
07
08
09
10
11
$6,363
$5,999
$4,887
$5,136
$6,051
$248
$252
$267
$258
REVENUE
$95
$90
$117
$125
$181
$171
EARNINGS FROM CONTINUING OPERATIONS
Dotted bars represent corporate earnings
from continuing operations (1)
$4.13
$4.19
$4.68
$4.51
$1.70
$1.62
$2.22
$2.37
$3.49
$3.31
Book value
Cash dividends
$ 25.77
$ 27.44
-6%
$ 1.12
$ 1.04
8%
EARNINGS PER DILUTED COMMON SHARE
FROM CONTINUING OPERATIONS
Dotted bars represent corporate earnings per share
from continuing operations (1)
OTHER DATA
Common shareholders of
record as of January
8,926
9,192
-3%
Common shares outstanding
51,143,946 51,174,757
0%
Number of vehicles managed(2)
205,200
182,100
13%
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FINANCIALS
“
In 2011, with only moderate improvement in the econ-
omy, we delivered significantly higher, double-digit
growth in both revenue and earnings which demon-
strates the improvements made in the business over
recent years as well as the strong operating leverage
in our business model. We also continued to invest in
the business to support long-term growth including new
and replacement equipment, acquisitions, technology,
and sales and marketing.”
ART GARCIA
Executive Vice President and Chief Financial Officer
Dollars in millions
2011
2010
Change
OPERATING OVERVIEW
Revenue
$ 6,051
$ 5,136
18%
Operating Revenue(1)
$ 4,815
$ 4,158
16%
10K
Earnings from continuing
operations before income taxes
$ 279
$ 186
50%
Comparable earnings
from continuing operations
before income taxes(1)
Earnings from continuing
operations
Comparable earnings
from continuing operations(1)
$ 285
$ 189
51%
$ 171
$ 125
38%
$ 181
$ 117
54%
Net earnings
$ 170
$ 118
44%
Number of employees
27,500
25,900
6%
1 Represents a non-GAAP financial measure – for details of this measure and a reconciliation to the GAAP measure, please
1 Represents a non-GAAP financial measure – for details of this measure and a reconciliation
refer to “Overview”, “Financial Resources and Liquidity” and “Non-GAAP Financial Measures” discussion presented in
Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Form 10-K which
to the GAAP measure, please refer to “Overview”,“Financial Resources and Liquidity” and
can be accessed by the link above.
“Non-GAAP Financial Measures” discussion presented in Management’s Discussion and
2 Includes our global fleet of owned and leased vehicles, as well as vehicles under contract maintenance agreements.
Analysis of Financial Condition and Results of Operations contained in Form 10-K which can
be accessed by the link above.
2 Includes our global fleet of owned and leased vehicles, as well as vehicles under contract
17
maintenance agreements.
18
Dollars in millions
1 Represents a non-GAAP financial measure – for details of this measure and a reconciliation to the GAAP measure, please
refer to “Overview”, “Financial Resources and Liquidity” and “Non-GAAP Financial Measures” discussion presented in
FINANCIAL DATA
Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Form 10-K which
can be accessed by the link above.
Total assets
2 Includes our global fleet of owned and leased vehicles, as well as vehicles under contract maintenance agreements.
$ 6,652
$ 7,618
15%
Total debt
$ 3,382
$ 2,747
23%
Shareholders equity
$ 1,318
$ 1,404
-6%
Return on average
shareholders equity
11.9%
8.4%
3.5 pts
Adjusted return on capital(1)
5.7%
4.8%
0.9 pts
Debt to equity
Free cash flow(1)
257%
196%
61 pts
$ (257)
$
258
-200%
Capital expenditures paid
$ 1,699
$ 1,070
59%
PER COMMON SHARE DATA
Earnings from continuing
operations – Diluted
Comparable earnings from
continuing operations – Diluted(1)
$ 3.31
$ 2.37
40%
$ 3.49
$ 2.22
57%
Net earnings – Diluted
$ 3.28
$ 2.25
46%
Book value
Cash dividends
$ 25.77
$ 27.44
-6%
$ 1.12
$ 1.04
8%
OTHER DATA
Common shareholders of
record as of January
8,926
9,192
-3%
Common shares outstanding
51,143,946 51,174,757
0%
Number of vehicles managed(2)
205,200
182,100
13%
Number of employees
27,500
25,900
6%
1 Represents a non-GAAP financial measure – for details of this measure and a reconciliation
to the GAAP measure, please refer to “Overview”,“Financial Resources and Liquidity” and
“Non-GAAP Financial Measures” discussion presented in Management’s Discussion and
Analysis of Financial Condition and Results of Operations contained in Form 10-K which can
be accessed by the link above.
maintenance agreements.
2 Includes our global fleet of owned and leased vehicles, as well as vehicles under contract
2011 AnnuAl Review
2011 AnnuAl Review
SHAREHOLDER INFORMATION
ExECuTIvE LEADERSHIP
Gregory T. Swienton
Chairman and
Chief Executive Officer
Robert E. Sanchez
President and
Chief Operating Officer
Art A. Garcia
Executive Vice President and
Chief Financial Officer
Dennis C. Cooke
President
Global Fleet Management Solutions
John H. Williford
President
Global Supply Chain Solutions
Robert D. Fatovic
Executive Vice President
Chief Legal Officer and
Corporate Secretary
BOARD OF DIRECTORS
Gregory T. Swienton
Chairman and Chief Executive
Officer of Ryder System, Inc.
James S. Beard 2,4
Retired Vice President of
Caterpillar Inc. and former
President of Caterpillar Financial
Services Corporation
John M. Berra 2,4
Retired Executive Vice President
of Emerson Electric Company
and former Chairman of Emerson
Process Management
Robert J. Eck 2,3
Chief Executive Officer of
Anixter International, Inc.
Thomas L. Jones
Senior Vice President and
General Manager
Supply Chain Solutions
John C. Sonia
Senior Vice President
Dedicated Contract Carriage Operations
W. Daniel Susik
Senior Vice President
Finance and Treasurer
Clifford F. Zoller
Senior Vice President
Audit Services
Cristina A. Gallo-Aquino
Vice President and
Controller
Gregory F. Greene
Executive Vice President and
Chief Administrative Officer
Keyvan Bohlooli
Senior Vice President and
Chief Information Officer
Stephen F. Dean
Senior Vice President
Sales and Marketing
Supply Chain Solutions
John J. Diez
Senior Vice President
Asset Management
Fleet Management Solutions
Sanford J. Hodes
Senior Vice President and
Deputy General Counsel
John J. Gleason
Senior Vice President
Sales and Marketing
Fleet Management Solutions
North America
L. Patrick Hassey 2,3
Retired Chairman and Chief Executive
Officer of Allegheny Technologies, Inc.
Lynn M. Martin 2,3
Former U.S. Secretary of Labor
Luis P. Nieto, Jr. 1,4
Retired President of the
Consumer Foods Group
for ConAgra Foods, Inc.
Eugene A. Renna 1,4
Retired Executive Vice President
of ExxonMobil Corporation; and
former President and Chief
Operating Officer of Mobil
Corporation
Abbie J. Smith 1,4
Professor of Accounting at the
University of Chicago Booth
School of Business
E. Follin Smith 1, 3, 5
Former Executive Vice President,
Chief Financial Officer and Chief
Administrative Officer of
Constellation Energy Group, Inc.
Hansel E. Tookes, II 1,3
Retired President of Raytheon
International and former Chairman
and Chief Executive Officer of
Raytheon Aircraft Company
1-Audit Committee
2-Compensation Committee
3-Corporate Governance and
Nominating Committee
4-Finance Committee
5-Lead Independent Director
GLOBAL OPERATING ENTITIES
ANNuAL MEETING
DIvIDEND REINvESTMENT PLAN
The annual meeting of shareholders of Ryder
System, Inc. will be held at 10:00 a.m., Friday,
May 4, 2012, at the Company’s Headquarters
in Miami, Florida.
SHAREHOLDER INFORMATION
For shareholder information please contact:
Investor Relations
Ryder System, Inc.
11690 N.W. 105th Street
Miami, FL 33178
(305) 500-4053
e-mail:RyderForInvestors@ryder.com
Shareholders may automatically reinvest
their dividends and cash in additional
shares of Ryder System, Inc. stock by
enrolling in the Company’s Dividend
Reinvestment Plan. Information about
the Dividend Reinvestment Plan may be
obtained by contacting:
Wells Fargo Bank, N.A.
Shareowner Services
Post Office Box 64854
St. Paul, MN 55164-0854
(866) 927-3884
(651) 450-4085 (fax)
www.wellsfargo.com/shareownerservices
Outside the U.S.
(651) 450-4064
For Dividend Reinvestment Plan
Optional Cash Investments:
Wells Fargo Shareowner Services
Post Office Box 64856
St. Paul, MN 55164-0856
INDEPENDENT REGISTERED
CERTIFIED PuBLIC
ACCOuNTING FIRM
PricewaterhouseCoopers LLP
TRANSFER AGENT AND
REGISTRAR
Wells Fargo Bank, N.A.
Shareowner Services
Post Office Box 64854
St. Paul, MN 55164-0854
(866) 927-3884
(651) 450-4085 (fax)
www.wellsfargo.com/
shareownerservices
Outside the U.S.
(651) 450-4064
united States
Ryder Transportation Services
Ryder Integrated Logistics, Inc.
Ryder Energy Distribution Corporation
Ryder Fleet Products, Inc.
Ryder Fuel Services, LLC
Ryder Puerto Rico, Inc.
Canada
Ryder Truck Rental Canada Ltd.
Ryder CRSA Logistics
Ryder Container Terminals
China
Ryder Logistics (Shanghai) Co., Ltd.
Hong Kong
Ryder CRSA Logistics (HK) Limited
Mexico
Ryder de Mexico, S. de R.L. de C.V.
Singapore
Ryder Ascent Logistics Pte Ltd.
united Kingdom
Ryder Limited
Germany
Ryder Deutschland GmbH
GLOBAL HEADquARTERS
Ryder System, Inc.
11690 N.W. 105th Street
Miami, FL 33178
(305) 500-3726
NEW YORK STOCK ExCHANGE
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