R Ryder System, Inc.

Risks

• Decreased customer demand for transportation services due to adverse economic conditions, competition or other factors could adversely impact our business and operating results.
• Our profitability could be negatively impacted if our key operational assumptions and pricing structure prove to be invalid.
• We operate in a highly regulated industry, and changes in existing regulations or costs of compliance with, or liability for violation of, existing or future laws or regulations could have a material adverse effect on our business.
• Failure to maintain, upgrade and consolidate our information technology networks could adversely affect us.
• We operate in a highly competitive industry and our business may suffer if we are unable to adequately address potential downward pricing pressures and other competitive factors.
• Failure to execute our growth strategy and develop, market and consistently deliver high-quality services that meet customer expectations may cause our revenue and earnings to suffer.
• We may be negatively impacted by adverse events in the global credit and financial markets, by an investment rating downgrade or by the loss of an investment grade rating.
• We derive a significant portion of our SCS and DTS segment revenue from a relatively small number of customers.
• We may face difficulties in attracting and retaining drivers and technicians.
• We intend to continue to explore strategic transactions (including acquisitions or divestitures). Our business could be adversely affected if we are not able to identify or successfully execute these strategic transactions.
• Failure to successfully negotiate with our union employees may result in strikes, work stoppages, or substantially higher labor costs.
• Volatility in assumptions and asset values related to our pension plans may adversely affect the valuation of our obligations, the current funding levels and our pension expense under our defined benefit pension plans.
• We may fail to establish sufficient insurance reserves and adequately estimate for future workers’ compensation and vehicle liabilities.
• Impairment in the carrying value of goodwill could negatively affect our operating results.
• Severe weather or other natural occurrences could result in significant business interruptions and expenditures in excess of available insurance coverage.
• Damage to our reputation through unfavorable publicity or the actions of our employees could adversely affect our financial condition.
• Future acts of terrorism, war or regulatory changes to combat the risk of terrorism may cause significant disruptions in our operations.
• Our business may be affected by uncertainty or changes in U.S. or global social, political or regulatory conditions.
• The market value of our common stock may fluctuate and could be substantially affected by various factors.
• Our failure to comply with U.S. or foreign tax laws or a government challenging our tax position could adversely affect our business and future operating results.