Ryder System, Inc., a logistics and transportation management solutions company, will record a pre-tax charge in the range of $34 million to $37 million, or $0.35 to $0.39 per share after income taxes, in the company's third quarter, which ended Sept. 30, 2000. The charge relates to Ryder's owned and leased revenue-earning equipment, and represents less than 1 percent of that asset base. On a pre-charge basis, Ryder's third quarter earnings per share should meet current First Call consensus estimates. The charge is a result of the continuing industry-wide downturn in the market for new and used Class 8 trucks and tractors (the largest heavy-duty tractors and straight trucks). Ryder's unsold Class 8 inventory consists of units previously used by customers of the company's full-service commercial lease and short-term commercial rental programs. However, despite the industry-wide slump in the sales of used Class 8 vehicles, Ryder still expects to report net gains on the sale of used equipment for the remainder of 2000. There are two principal components of the pre-tax charge. The first is a write-down of certain Ryder-owned unsold used tractors, reflecting current market conditions and anticipated net sales proceeds. The second component is an increase in the company's reserves for guaranteed termination values for equipment that Ryder leases rather than owns. Actual results for the third quarter will be released on Oct. 19, 2000, at which time the company will host a conference call. With SEC regulations regarding full disclosure, Ryder does not plan to provide any further information regarding its third quarter performance until Oct. 19. Because of the weak market for used Class 8 vehicles, the company will also be increasing depreciation and other expenses related to vehicles it plans to sell during the next two years. Although there are forecasts for both a continued weak used-truck market and a general slowing of economic activity, Ryder management believes the company's earnings will be around the current consensus estimates for the fourth quarter of 2000. Actions Ryder Is Taking To Reduce Its Used Truck Inventory: While weakness in the used truck market is an industry-wide issue, Ryder has taken several steps to reduce its inventory. Ryder has largely stopped the previous practice of early replacement of vehicles, reducing inventory build-up and capital expenditures while improving its Economic Value Added (EVA) margins. Ryder increased its marketing activities, including additional advertising and direct mail programs. It also launched and then enhanced its used-vehicle sales website, www.usedtrucks.ryder.com. It also just provided a Spanish language version of the website, and a French version will be offered early in 2001. In addition, the company is increasing its sales capacity and efficiency. It has opened several used-truck centers, and by year-end expects its total from 40 to 46. Ryder is re-deploying vehicles for new applications, particularly for use in its dedicated contract carriage and logistics offerings. It is also increasing the number of used trucks it is selling in export markets. Based on these measures, Ryder should be able to normalize its used truck inventory levels in the next eight to 10 months even though the weakness in the market is expected to last for the next two years.