Item 7.01 Regulation FD Disclosure.
The following information is furnished pursuant to Item 7.01 "Regulation FD
Disclosure."
We hold a 28.9% ownership interest in Penske Truck Leasing Co., L.P. ("PTL").
Penske Transportation Solutions ("PTS") is the universal brand name for PTL's
various business lines through which it is capable of meeting customers' needs
across the supply chain with a broad product offering that includes full-service
truck leasing, truck rental and contract maintenance, along with logistic
services such as dedicated contract carriage, distribution center management,
transportation management, lead logistics provider services and dry van
truckload carrier services. PTS is owned 41.1% by Penske Corporation, 28.9% by
us, and 30.0% by Mitsui & Co., Ltd. We account for our investment in PTS under
the equity method, and we therefore record our share of PTS's earnings on our
statements of income under the caption "Equity in earnings of affiliates," which
also includes the results of our other equity method investments.
On October 19, 2020, PTS announced that it intends to undertake a debt financing
and has provided to its potential investors that, while it is in the process of
finalizing its results for the nine months ended September 30, 2020, it
estimates that consolidated net earnings for the period were $373 million (of
which approximately $108 million would be recorded as earnings with respect to
our 28.9% ownership interest).
The preliminary PTS financial data included in this Item 7.01 has been prepared
by, and is the responsibility of, PTS. PTS's closing process for the period has
not yet been completed. The preliminary PTS financial data presented above is
therefore a preliminary estimate and is subject to change. Actual results could
differ materially.
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