**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| **x** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------|------------------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended **
**June      30, 2005**

**Commission      File No.**
**      0-13295**

**CATERPILLAR      FINANCIAL SERVICES CORPORATION**

**(Exact      name of Registrant as specified in its charter)**

| **Delaware**                                | **37-1105865**                             |
|---------------------------------------------|--------------------------------------------|
| **(State                of incorporation)** | **(IRS                Employer I.D. No.)** |

| **2120                West End Ave.****Nashville,                Tennessee** |  **37203-0001**          |
|------------------------------------------------------------------------------|-------------------------------|
| **(Address                of principal executive offices)**                  | **(Zip                Code)** |

**Registrant's      telephone number, including area code:**
**      (615) 341-1000**

**The      Registrant is a wholly-owned subsidiary of Caterpillar Inc. and meets the      conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q,      and      is therefore filing this form with the reduced disclosure      format.**

**Indicate      by a check mark whether the Registrant (1) has filed all reports required to      be      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during      the      preceding 12 months (or for such shorter period that the Registrant was required      to file such reports), and (2) has been subject to such filing requirements      for      the past 90 days. **

**Yes**
**      No **
** **

**Indicate      **
**by      check mark whether the Registrant is an accelerated filer (as defined in Rule      12b-2 of the Exchange Act). **

**Yes      **
**      No **

**At      August 4, 2005, one share of common stock of the Registrant was outstanding,      which is owned by Caterpillar Inc.**

**Caterpillar      Financial Services Corporation**

**Form      10-Q for the Quarter Ended June 30, 2005**

**PART      I FINANCIAL INFORMATION**

Item      1. Consolidated Financial Statements      (Unaudited)

Consolidated      Statement of Financial      Position

Consolidated      Statement of Profit

Consolidated      Statement of Changes in Stockholder’s      Equity

Consolidated      Statement of Cash Flows

Notes      to Consolidated Financial Statements

Item      2. Management’s Discussion and Analysis of Financial      Condition and Results of Operations

Overview:      Second Quarter 2005 vs. Second Quarter      2004

Forward-Looking      Statements

Critical      Accounting Policies

Three      Months Ended June 30, 2005 vs. Three Months Ended      June 30, 2004

Six      Months Ended June 30, 2005 vs. Six Months Ended June      30, 2004

Capital      Resources and Liquidity

Item      4. Controls and Procedures

**PART      II. OTHER INFORMATION**

Item      6. Exhibits 

Signatures

**Part      I. FINANCIAL INFORMATION**

**Item      1. Consolidated Financial Statements      (Unaudited)**

----

**Caterpillar      Financial Services Corporation**

**Consolidated      Statement of Financial Position**** **

|                                                                     |   |   | June                30, |   |   | December                31, |   |   | June                30, |   |
|--------------------------------------------------------------------------|--------|--------|-------------------------|--------|--------|-----------------------------|--------|--------|-------------------------|--------|
|                                                                     |   |   | 2005                    |   |   | 2004                        |   |   | 2004                    |   |
| Assets:                                                                  |   |   |                    |   |   |                        |   |   |                    |   |
| Cash                and cash equivalents                                 |   | $      | 187                     |   | $      | 98                          |   | $      | 87                      |   |
| Finance                receivables                                       |   |   |                    |   |   |                        |   |   |                    |   |
| Retail                notes receivable                                   |   |   | 4,681                   |   |   | 4,580                       |   |   | 4,315                   |   |
| Wholesale                notes receivable                                |   |   | 5,008                   |   |   | 4,789                       |   |   | 1,817                   |   |
| Notes                receivable from Caterpillar                         |   |   | 129                     |   |   | 120                         |   |   | 412                     |   |
| Finance                leases and installment sale contracts - Retail    |   |   | 12,035                  |   |   | 11,769                      |   |   | 9,920                   |   |
| Finance                leases and installment sale contracts - Wholesale |   |   | 214                     |   |   | 185                         |   |   | 189                     |   |
|                                                                     |   |   | 22,067                  |   |   | 21,443                      |   |   | 16,653                  |   |
| Less:                Unearned income                                     |   |   | 1,328                   |   |   | 1,261                       |   |   | 1,018                   |   |
| Allowance                for credit losses                               |   |   | 284                     |   |   | 278                         |   |   | 255                     |   |
| Total                net finance receivables                             |   |   | 20,455                  |   |   | 19,904                      |   |   | 15,380                  |   |
|                                                                     |   |   |                    |   |   |                        |   |   |                    |   |
| Retained                interests in securitized wholesale receivables   |   |   | -                       |   |   | -                           |   |   | 2,163                   |   |
|                                                                     |   |   |                    |   |   |                        |   |   |                    |   |
| Equipment                on operating leases,                            |   |   |                    |   |   |                        |   |   |                    |   |
| less                accumulated depreciation                             |   |   | 2,552                   |   |   | 2,569                       |   |   | 2,277                   |   |
| Deferred                income taxes                                     |   |   | 33                      |   |   | 28                          |   |   | 18                      |   |
| Other                assets                                              |   |   | 1,002                   |   |   | 973                         |   |   | 1,220                   |   |
| Total                assets                                              |   | $      | 24,229                  |   | $      | 23,572                      |   | $      | 21,145                  |   |
|                                                                     |   |   |                    |   |   |                        |   |   |                    |   |
|                                                                     |   |   |                    |   |   |                        |   |   |                    |   |
| Liabilities                and stockholder's equity:                     |   |   |                    |   |   |                        |   |   |                    |   |
| Payable                to dealers and others                             |   | $      | 245                     |   | $      | 221                         |   | $      | 182                     |   |
| Payable                to Caterpillar - other                            |   |   | 30                      |   |   | 23                          |   |   | 24                      |   |
| Accrued                expenses                                          |   |   | 221                     |   |   | 179                         |   |   | 155                     |   |
| Income                taxes payable                                      |   |   | 65                      |   |   | 23                          |   |   | 92                      |   |
| Payable                to Caterpillar - borrowings                       |   |   | 378                     |   |   | 333                         |   |   | 265                     |   |
| Short-term                borrowings                                     |   |   | 4,893                   |   |   | 5,464                       |   |   | 4,314                   |   |
| Current                maturities of long-term debt                      |   |   | 3,204                   |   |   | 3,519                       |   |   | 3,728                   |   |
| Long-term                debt                                            |   |   | 12,039                  |   |   | 10,713                      |   |   | 9,691                   |   |
| Deferred                income taxes and other liabilities               |   |   | 377                     |   |   | 377                         |   |   | 283                     |   |
| Total                liabilities                                         |   |   | 21,452                  |   |   | 20,852                      |   |   | 18,734                  |   |
|                                                                     |   |   |                    |   |   |                        |   |   |                    |   |
| Common                stock - $1 par value                               |   |   |                    |   |   |                        |   |   |                    |   |
| Authorized:                2,000 shares; Issued and                      |   |   |                    |   |   |                        |   |   |                    |   |
| outstanding:                one share (at paid in amount)                |   |   | 745                     |   |   | 745                         |   |   | 745                     |   |
| Retained                earnings                                         |   |   | 1,863                   |   |   | 1,690                       |   |   | 1,538                   |   |
| Accumulated                other comprehensive income                    |   |   | 169                     |   |   | 285                         |   |   | 128                     |   |
| Total                stockholder's equity                                |   |   | 2,777                   |   |   | 2,720                       |   |   | 2,411                   |   |
|                                                                     |   |   |                    |   |   |                        |   |   |                    |   |
| Total                liabilities and stockholder's equity                |   | $      | 24,229                  |   | $      | 23,572                      |   | $      | 21,145                  |   |

**Caterpillar        Financial Services Corporation**

**Consolidated        Statement of Profit**

|                                                   |   |   Three                Months Ended   |    Six                Months Ended    |
|--------------------------------------------------------|--------|-----------------------------------------------------------|---------------------------------------------------------------------|
|                                                   |   |                                                      | June                30,                                             |   |   | June                30, |   |   | June                30, |   |   | June                30, |   |
|                                                   |   |                                                      | 2005                                                                |   |   | 2004 |   |   | 2005 |   |   | 2004 |   |
| Revenues:                                              |   |                                                      |                                                                |   |   |   |   |   |   |   |   |   |   |
| Wholesale                finance                       |   | $                                                         | 87                                                                  |   | $ | 49 |   | $ | 159 |   | $ | 91 |   |
| Retail                finance                          |   |                                                      | 257                                                                 |   |   | 203 |   |   | 510 |   |   | 410 |   |
| Operating                lease                         |   |                                                      | 192                                                                 |   |   | 176 |   |   | 380 |   |   | 354 |   |
| Other                                                  |   |                                                      | 51                                                                  |   |   | 39 |   |   | 81 |   |   | 69 |   |
| Total                revenues                          |   |                                                      | 587                                                                 |   |   | 467 |   |   | 1,130 |   |   | 924 |   |
|                                                   |   |                                                      |                                                                |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                              |   |                                                      |                                                                |   |   |   |   |   |   |   |   |   |   |
| Interest                                               |   |                                                      | 188                                                                 |   |   | 121 |   |   | 361 |   |   | 242 |   |
| Depreciation                on assets leased to others |   |                                                      | 154                                                                 |   |   | 140 |   |   | 306 |   |   | 282 |   |
| General,                operating, and administrative  |   |                                                      | 85                                                                  |   |   | 74 |   |   | 161 |   |   | 139 |   |
| Provision                for credit losses             |   |                                                      | 20                                                                  |   |   | 32 |   |   | 36 |   |   | 52 |   |
| Other                                                  |   |                                                      | 2                                                                   |   |   | 3 |   |   | 4 |   |   | 5 |   |
| Total                expenses                          |   |                                                      | 449                                                                 |   |   | 370 |   |   | 868 |   |   | 720 |   |
|                                                   |   |                                                      |                                                                |   |   |   |   |   |   |   |   |   |   |
| Profit                before income taxes              |   |                                                      | 138                                                                 |   |   | 97 |   |   | 262 |   |   | 204 |   |
|                                                   |   |                                                      |                                                                |   |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes              |   |                                                      | 48                                                                  |   |   | 34 |   |   | 89 |   |   | 69 |   |
| Profit                                                 |   | $                                                         | 90                                                                  |   | $ | 63 |   | $ | 173 |   | $ | 135 |   |
|                                                   |   |                                                      |                                                                |   |   |   |   |   |   |   |   |   |   |

----

**Caterpillar      Financial Services Corporation**

**Consolidated      Statement of Changes in Stockholder's      Equity**

|                                                                                                                   |   | Six                months Ended                           |                                                       |
|------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|------------------------------------------------------------|
|                                                                                                                        |   | June                30,                                   | June                30,                                    |
|                                                                                                                   |   |                    2005     |                     2004     |
|                                                                                                                   |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Common                stock at paid-in amount:                                                                         |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Balance                at beginning of year                                                                            |   | $                                                         | 745                                                        |   |   |   |   | $ | 745 |   |   |   |   |
| Balance                at end of period                                                                                |   |                                                      | 745                                                        |   |   |   |   |   | 745 |   |   |   |   |
|                                                                                                                   |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Retained                earnings:                                                                                      |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Balance                at beginning of year                                                                            |   |                                                      | 1,690                                                      |   |   |   |   |   | 1,403 |   |   |   |   |
| Profit                                                                                                                 |   |                                                      | 173                                                        |   | $ | 173 |   |   | 135 |   | $ | 135 |   |
| Balance                at end of period                                                                                |   |                                                      | 1,863                                                      |   |   |   |   |   | 1,538 |   |   |   |   |
|                                                                                                                   |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Accumulated                other comprehensive income/(loss):                                                          |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment                                                                 |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Balance                at beginning of year                                                                            |   |                                                      | 278                                                        |   |   |   |   |   | 163 |   |   |   |   |
| Aggregate                adjustment for the period                                                                     |   |                                                      | (119                                                       | ) |   | (119 | ) |   | (37 | ) |   | (37 | ) |
| Balance                at end of period                                                                                |   |                                                      | 159                                                        |   |   |   |   |   | 126 |   |   |   |   |
| Interest                rate derivative instruments (net of tax)                                                       |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Balance                at beginning of year net of tax of: 2005 - $2; 2004 - $(9)                                      |   |                                                      | -                                                          |   |   |   |   |   | (18 | ) |   |   |   |
| Losses                deferred during the period net                of tax of: 2005 - $(2); 2004 - $(7)                |   |                                                      | (7                                                         | ) |   | (7 | ) |   | (16 | ) |   | (16 | ) |
| Losses reclassed                to earnings during the period net                of tax of: 2005 - $4; 2004 - $14 |   |                                                      | 11                                                         |   |   | 11 |   |   | 32 |   |   | 32 |   |
| Balance                at end of period net of tax of: 2005 - $4; 2004 - $(2)                                          |   |                                                      | 4                                                          |   |   |   |   |   | (2 | ) |   |   |   |
| Other                instruments (net of tax)                                                                          |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Balance                at beginning of year                                                                            |   |                                                      | 7                                                          |   |   |   |   |   | 5 |   |   |   |   |
| Aggregate                adjustment for the period                                                                     |   |                                                      | (1                                                         | ) |   | (1 | ) |   | (1 | ) |   | (1 | ) |
| Balance                at end of period                                                                                |   |                                                      | 6                                                          |   |   |   |   |   | 4 |   |   |   |   |
| Total                accumulated other comprehensive income                                                            |   |                                                      | 169                                                        |   |   |   |   |   | 128 |   |   |   |   |
|                                                                                                                   |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                                    |   |                                                      |                                                       |   | $ | 57 |   |   |   |   | $ | 113 |   |
|                                                                                                                   |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |                                                      |                                                       |   |   |   |   |   |   |   |   |   |   |
| Total                stockholder’s equity                                                                        |   | $                                                         | 2,777                                                      |   |   |   |   | $ | 2,411 |   |   |   |   |

----

**Caterpillar      Financial Services Corporation**

**Consolidated      Statement of Cash Flows**

|                                                                                                      |   |        Six                Months Ended     |                    |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|-------------------------|
|                                                                                                      |   |                                                                                              | June                30, |   |   | June                30, |   |
|                                                                                                      |   |                                                                                              | 2005                    |   |   | 2004 |   |
| Cash                flows from operating activities:                                                      |   |                                                                                              |                    |   |   |   |   |
| Profit                                                                                                    |   | $                                                                                                 | 173                     |   | $ | 135 |   |
| Adjustments                for non-cash items:                                                            |   |                                                                                              |                    |   |   |   |   |
| Depreciation                of equipment on operating leases and non-leased equipment                     |   |                                                                                              | 317                     |   |   | 293 |   |
| Amortization                of purchased discount                                                         |   |                                                                                              | (103                    | ) |   | (62 | ) |
| Provision                for credit losses                                                                |   |                                                                                              | 36                      |   |   | 52 |   |
| Gain                on sale of receivables                                                                |   |                                                                                              | (16                     | ) |   | (16 | ) |
| Other                                                                                                     |   |                                                                                              | (61                     | ) |   | (21 | ) |
| Change                in assets and liabilities:                                                          |   |                                                                                              |                    |   |   |   |   |
| Receivables                from customers and others                                                      |   |                                                                                              | (30                     | ) |   | (32 | ) |
| Other                receivables/payables with Caterpillar                                                |   |                                                                                              | 1                       |   |   | 18 |   |
| Payable                to dealers and others                                                              |   |                                                                                              | 31                      |   |   | 7 |   |
| Accrued                expenses                                                                           |   |                                                                                              | 104                     |   |   | (1 | ) |
| Income                taxes payable                                                                       |   |                                                                                              | 44                      |   |   | 38 |   |
| Net                cash provided by operating activities                                                  |   |                                                                                              | 496                     |   |   | 411 |   |
|                                                                                                      |   |                                                                                              |                    |   |   |   |   |
| Cash                flows from investing activities:                                                      |   |                                                                                              |                    |   |   |   |   |
| Expenditures                for equipment on operating leases and for non-leased                equipment |   |                                                                                              | (624                    | ) |   | (542 | ) |
| Proceeds                from disposals of equipment                                                       |   |                                                                                              | 380                     |   |   | 368 |   |
| Additions                to finance receivables                                                           |   |                                                                                              | (16,034                 | ) |   | (7,709 | ) |
| Collections                of finance receivables                                                         |   |                                                                                              | 13,894                  |   |   | 5,670 |   |
| Additions                to retained interests in securitized wholesale receivables                       |   |                                                                                              | -                       |   |   | (5,038 | ) |
| Collections                of retained interests in securitized wholesale receivables                     |   |                                                                                              | -                       |   |   | 4,476 |   |
| Proceeds                from sales of receivables                                                         |   |                                                                                              | 859                     |   |   | 1,181 |   |
| Notes                receivable from Caterpillar                                                          |   |                                                                                              | (9                      | ) |   | (43 | ) |
| Investment                in partnerships                                                                 |   |                                                                                              | (1                      | ) |   | 6 |   |
| Other,                net                                                                                 |   |                                                                                              | 10                      |   |   | 14 |   |
| Net                cash used for investing activities                                                     |   |                                                                                              | (1,525                  | ) |   | (1,617 | ) |
|                                                                                                      |   |                                                                                              |                    |   |   |   |   |
| Cash                flows from financing activities:                                                      |   |                                                                                              |                    |   |   |   |   |
| Payable                to Caterpillar - borrowings                                                        |   |                                                                                              | 67                      |   |   | (201 | ) |
| Proceeds                from long-term debt                                                               |   |                                                                                              | 3,589                   |   |   | 3,047 |   |
| Payments                on long-term debt                                                                 |   |                                                                                              | (2,358                  | ) |   | (1,540 | ) |
| Short-term                borrowings, net                                                                 |   |                                                                                              | (184                    | ) |   | (88 | ) |
| Net                cash provided by financing activities                                                  |   |                                                                                              | 1,114                   |   |   | 1,218 |   |
|                                                                                                      |   |                                                                                              |                    |   |   |   |   |
| Effect                of exchange rate changes on cash                                                    |   |                                                                                              | 4                       |   |   | 6 |   |
|                                                                                                      |   |                                                                                              |                    |   |   |   |   |
| Net                change in cash and cash equivalents                                                    |   |                                                                                              | 89                      |   |   | 18 |   |
|                                                                                                      |   |                                                                                              |                    |   |   |   |   |
| Cash                and cash equivalents at beginning of year                                             |   |                                                                                              | 98                      |   |   | 69 |   |
|                                                                                                      |   |                                                                                              |                    |   |   |   |   |
| Cash                and cash equivalents at end of period                                                 |   | $                                                                                                 | 187                     |   | $ | 87 |   |
|                                                                                                      |   |                                                                                              |                    |   |   |   |   |

**Notes      to Consolidated Financial Statements**** **

| **A.** | **Use                of estimates in the preparation of financial                statements** |
|--------|-----------------------------------------------------------------------------------------------|

| **B.** | **Supplemental                segment data** |
|--------|----------------------------------------------|

|  s | North                America: We have offices in the United States and Canada that serve                local                dealers and customers. This segment also provides project financing                in                various countries.                                                                                                                                                                                                                                                           |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  s | Europe:                We have offices in Europe to serve European dealers and customers.                This                segment also includes our office in Russia, which serves dealers                and                customers in the Commonwealth of Independent States.                                                                                                                                                                                                                           |
|  s | Asia-Pacific:                We have offices in Australia, New Zealand, and Asia that serve local                dealers and customers.                                                                                                                                                                                                                                                                                                                                                                        |
|  s | Diversified                Services: Included is our Global Accounts Division, which primarily                provides cross-border financing to customers in countries in which                we have                no local presence; Marine Services Division, which primarily finances                marine vessels with Caterpillar engines for all countries; and our                offices                in Latin America that serve local dealers and                customers.                   |
|  s | Cat                Power Finance: This segment                primarily provides                debt financing for Caterpillar electrical                power generation, gas compression**, **and                co-generation systems (including the related non-Caterpillar equipment                included in said systems), as well as non-Caterpillar                equipment that                is                powered by Caterpillar engines, for all                countries. |

**Supplemental      segment data for the three months ended June 30,**

| **2005**                               |   |   | **North****America** |   |   | **Europe** |   |   | **Diversified****Services** |   |   | **Asia-Pacific**                 |   |   | **Cat                Power****Finance** |   |   | **Total** |   |
|----------------------------------------|--------|--------|----------------------|--------|--------|------------|--------|--------|-----------------------------|--------|--------|----------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------|--------|
| External                revenue        |   | $      | 357                  |   |   | 89         |   |   | 76                          |   |   | 49                               |   |   | 16                                      |   | $      | 587       |   |
| Inter-segment                revenue   |   | $      | 8                    |   |   | -          |   |   | -                           |   |   | -                                |   |   | -                                       |   | $      | 8         |   |
| Profit                                 |   | $      | 53                   |   |   | 15         |   |   | 13                          |   |   | 4                                |   |   | 5                                       |   | $      | 90        |   |
| Assets                at June 30, 2005 |   | $      | 13,738               |   |   | 4,341      |   |   | 4,855                       |   |   | 1,978                            |   |   | 1,219                                   |   | $      | 26,131    |   |
|                                   |   |   |                 |   |   |       |   |   |                        |   |   |                             |   |   |                                    |   |   |      |   |
| **2004**                               |   |   | **North****America** |   |   | **Europe** |   |   | **Diversified****Services** |   |   | **Asia-                Pacific** |   |   | **Cat                Power****Finance** |   |   | **Total** |   |
| External                revenue        |   | $      | 279                  |   |   | 84         |   |   | 55                          |   |   | 32                               |   |   | 17                                      |   | $      | 467       |   |
| Inter-segment                revenue   |   | $      | 5                    |   |   | -          |   |   | -                           |   |   | -                                |   |   | -                                       |   | $      | 5         |   |
| Profit                                 |   | $      | 36                   |   |   | 12         |   |   | 7                           |   |   | 3                                |   |   | 5                                       |   | $      | 63        |   |
| Assets                at June 30, 2004 |   | $      | 12,112               |   |   | 4,108      |   |   | 4,615                       |   |   | 1,287                            |   |   | 1,256                                   |   | $      | 23,378    |   |

| **Reconciliation                of assets:** |   | **June                30, 2005** |   | **June                30, 2004** |   |
|----------------------------------------------|--------|----------------------------------|--------|----------------------------------|--------|
| Assets                from segments          |   | $                                | 26,131 |                             | $      | 23,378 |   |
| Investment                in subsidiaries    |   |                             | (934   | )                                |   | (902 | ) |
| Inter-segment                balances        |   |                             | (968   | )                                |   | (1,331 | ) |
| Total                assets                  |   | $                                | 24,229 |                             | $      | 21,145 |   |

**Supplemental      segment data for the six months ended June 30,**

| **2005**                             |   |   | **North****America** |   |   | **Europe** |   |   | **Diversified****Services** |   |   | **Asia-Pacific** |   |   | **Cat                Power****Finance** |   |   | **Total** |   |
|--------------------------------------|--------|--------|----------------------|--------|--------|------------|--------|--------|-----------------------------|--------|--------|------------------|--------|--------|-----------------------------------------|--------|--------|-----------|--------|
| External                revenue      |   | $      | 683                  |   |   | 179        |   |   | 143                         |   |   | 92               |   |   | 33                                      |   | $      | 1,130     |   |
| Inter-segment                revenue |   | $      | 14                   |   |   | -          |   |   | -                           |   |   | -                |   |   | -                                       |   | $      | 14        |   |
| Profit                               |   | $      | 101                  |   |   | 32         |   |   | 22                          |   |   | 8                |   |   | 10                                      |   | $      | 173       |   |
|                                 |   |   |                 |   |   |       |   |   |                        |   |   |             |   |   |                                    |   |   |      |   |
| **2004**                             |   |   | **North****America** |   |   | **Europe** |   |   | **Diversified****Services** |   |   | **Asia-Pacific** |   |   | **Cat                Power****Finance** |   |   | **Total** |   |
| External                revenue      |   | $      | 544                  |   |   | 170        |   |   | 116                         |   |   | 63               |   |   | 31                                      |   | $      | 924       |   |
| Inter-segment                revenue |   | $      | 9                    |   |   | -          |   |   | -                           |   |   | -                |   |   | -                                       |   | $      | 9         |   |
| Profit                               |   | $      | 72                   |   |   | 26         |   |   | 21                          |   |   | 7                |   |   | 9                                       |   | $      | 135       |   |

| **C.** | **Derivative                Instruments and Hedging                Activities** |
|--------|---------------------------------------------------------------------------------|

|                                                                                                               |   |   | **2005** |   |   | **2004** |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Gain/(loss)                on designated interest rate derivatives—included in Other                revenues |   | $      | 50       |   | $      | (73      | )      |
| Gain/(loss)                on hedged debt—included in Other revenues                                         |   |   | (50      | )      |   | 73       |   |
| Gain                on liquidated swaps—included in Interest expense                                         |   |   | 1        |   |   | 1        |   |

|                                                                                                               |   |   | **2005** |   |   | **2004** |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Gain/(loss)                on designated interest rate derivatives—included in Other                revenues |   | $      | 3        |   | $      | (39      | )      |
| Gain/(loss)                on hedged debt—included in Other revenues                                         |   |   | (3       | )      |   | 39       |   |
| Gain                on liquidated swaps—included in Interest expense                                         |   |   | 2        |   |   | 1        |   |

| **D.** | **Guarantees** |
|--------|----------------|

|                                               |   |                  | **June                30, 2005** |   |   | **December                31, 2004** |   |
|----------------------------------------------------|--------|-----------------------|----------------------------------|--------|--------|--------------------------------------|--------|
| Guarantees                with Caterpillar dealers |   | $                     | 395                              |   | $      | 364                                  |   |
| Guarantees                - other                  |   |                  | 77                               |   |   | 62                                   |   |
| Total                guarantees                    |   |                $ | 472                              |   | $      | 426                                  |   |

| **E.** | **Securitized                Assets** |
|--------|---------------------------------------|

**F.**
**New      Accounting Standards **

**Item      2. Management's Discussion and Analysis of Financial Condition      and Results of Operations**

**Overview:      Second Quarter 2005 vs. Second Quarter 200****4**

|  s | Revenues                were a record $587, an increase of $120 or 26% compared with the                same                period last year.                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  s | Profit                after tax was a record $90, up $27 or 43% from a year                ago.                                                                                                        |
|  s | New                retail financing was a record $3,268, an increase of $681 or 26%                from the                second quarter last year.                                                   |
|  s | Past                dues over 30 days were 2.10% of total receivables plus retained interests                in securitized wholesale receivables compared with 2.57% at June                30, 2004. |
|  s | Write-offs                of bad debts exceeded recoveries by $3 during the second quarter                of 2005                compared to $16 during the same period last                year.      |

**Forward-Looking      Statements**

**Critical      Accounting      Policies**

**Three      Months Ended June 30, 2005 vs. Three Months Ended June 30, 2004**

**Revenues**

|                                                                           |   |   | **2005** |   |   | **2004** |   |
|--------------------------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Gain                on sale of receivables                                     |   | $      | 15       |   | $      | 14       |   |
| Fees                                                                           |   |   | 8        |   |   | 7        |   |
| Late                charge income                                              |   |   | 7        |   |   | 7        |   |
| Gain                on sale of equipment returned from lease                   |   |   | 6        |   |   | -        |   |
| Income                related to retained interests in securitized receivables |   |   | 4        |   |   | 3        |   |
| Service                fee income on securitized receivables                   |   |   | 4        |   |   | 3        |   |
| Forward                points on foreign exchange contracts                    |   |   | 3        |   |   | -        |   |
| Partnership                income                                              |   |   | 2        |   |   | 1        |   |
| Dividend                income                                                 |   |   | 1        |   |   | 4        |   |
| Miscellaneous                other revenue, net                                |   |   | 1        |   |   | -        |   |
| Total                other revenue                                             |   | $      | 51       |   | $      | 39       |   |

**Expenses**

**Profit**

**Assets**

**Managed      Assets **

|                                                               |   |   | **2005** |   |   | **2004** |   |
|--------------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Installment                sale contracts securitized              |   | $      | 1,245    |   | $      | 1,055    |   |
| Finance                leases securitized                          |   |   | 61       |   |   | 69       |   |
| Less:                retained interests (included in Other assets) |   |   | 71       |   |   | 72       |   |
| Off-balance-sheet                securitized retail receivables    |   | $      | 1,235    |   | $      | 1,052    |   |

|                                                  |   |   | **2005** |   |   | **2004** |   |
|-------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Finance                leases                         |   | $      | 89       |   | $      | 4        |   |
| Installment                sale contracts             |   |   | 8        |   |   | 2        |   |
| Operating                leases                       |   |   | 31       |   |   | -        |   |
| Total                other managed receivables/leases |   | $      | 128      |   | $      | 6        |   |

**Allowance      for Credit Losses**

|                                                            |   |   | **2005** |   |   | **2004** |   |
|-----------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Balance                at beginning of quarter                  |   | $      | 283      |   | $      | 248      |   |
| Provision                for credit losses                      |   |   | 20       |   |   | 32       |   |
| Receivables                written off                          |   |   | (9       | )      |   | (20      | )      |
| Recoveries                on receivables previously written off |   |   | 6        |   |   | 4        |   |
| Adjustment                related to sale of receivables        |   |   | (11      | )      |   | (6       | )      |
| Foreign                currency translation adjustment          |   |   | (5       | )      |   | (3       | )      |
| Balance                at end of the period                     |   | $      | 284      |   | $      | 255      |   |

**Past      Due Finance Receivables Plus Retained Interests in Securitized Wholesale      Receivables**

**Six      Months Ended June 30, 2005 vs. Six Months Ended June 30,      200****4**

**Revenues**

|                                                                           |   |   | **2005** |   |   | **2004** |   |
|--------------------------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Gain                on sale of receivables                                     |   | $      | 16       |   | $      | 16       |   |
| Fees                                                                           |   |   | 15       |   |   | 13       |   |
| Late                charge income                                              |   |   | 13       |   |   | 13       |   |
| Gain                on sale of equipment returned from lease                   |   |   | 10       |   |   | 6        |   |
| Income                related to retained interests in securitized receivables |   |   | 7        |   |   | 5        |   |
| Service                fee income on securitized receivables                   |   |   | 6        |   |   | 5        |   |
| Forward                points on foreign exchange contracts                    |   |   | 5        |   |   | (1       | )      |
| Partnership                income                                              |   |   | 4        |   |   | 1        |   |
| Dividend                income                                                 |   |   | 1        |   |   | 8        |   |
| Miscellaneous                other revenue, net                                |   |   | 4        |   |   | 3        |   |
| Total                other revenue                                             |   | $      | 81       |   | $      | 69       |   |

**Expenses**

**Profit**

**Assets**

**Allowance      For Credit Losses **

|                                                            |   |   | **2005** |   |   | **2004** |   |
|-----------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Balance                at beginning of year                     |   | $      | 278      |   | $      | 241      |   |
| Provision                for credit losses                      |   |   | 36       |   |   | 52       |   |
| Receivables                written off                          |   |   | (18      | )      |   | (35      | )      |
| Recoveries                on receivables previously written off |   |   | 10       |   |   | 8        |   |
| Adjustment                related to sale of receivables        |   |   | (12      | )      |   | (6       | )      |
| Foreign                currency translation adjustment          |   |   | (10      | )      |   | (5       | )      |
| Balance                at end of the period                     |   | $      | 284      |   | $      | 255      |   |

**Capital      Resources And      Liquidity**

*Total      outstanding borrowings*
** **

| ·   | $14,999                of medium-term notes |
|--------------------|---------------------------------------------|

| ·   | $                 3,865 of commercial paper |
|--------------------|--------------------------------------------------|

| ·   | $                    556 of short-term bank borrowings |
|--------------------|----------------------------------------------------------------------------|

| ·   | $                    472 of variable denomination floating rate demand                notes |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | $                    378 of notes payable to Caterpillar |
|--------------------|------------------------------------------------------------------------------|

| ·   | $                    236 of long-term bank borrowings |
|--------------------|---------------------------------------------------------------------------|

| ·   | $                        8 of loans from a company-owned partnership |
|--------------------|--------------------------------------------------------------------------------------------------------------|

*Revolving      credit lines*
** **
* *

*Short-term      credit lines from banks*

*Variable      amount lending agreements with Caterpillar*

*Off-balance      sheet arrangements*

*Cash      flows*

**Item      4. Controls and Procedures**

**Evaluation      of disclosure controls and procedures**

**Changes      in internal control over financial reporting**

**PART      II. OTHER INFORMATION**

**Item      6. Exhibits**

| Exhibit                No. | Description                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2                        | Bylaws                of Caterpillar Financial Services Corporation (Amended as of July                20,                2004)                                                                                                                                                                                                                                                                                                           |
| 12                         | Ratio                of Profit to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                           |
| 31                         | Certifications                of Kent M. Adams, President, Director, and Chief Executive Officer                of                Caterpillar Financial Services Corporation, and Edward J. Scott,                Executive                Vice President and Chief Financial Officer of Caterpillar Financial                Services Corporation, as required pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002. |
| 32                         | Certification                of Kent M. Adams, President, Director, and Chief Executive Officer                of                Caterpillar Financial Services Corporation, and Edward J. Scott,                Executive                Vice President and Chief Financial Officer of Caterpillar Financial                Services Corporation, as required pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002.  |

**Signatures**

**Pursuant      to the requirements of the Securities Exchange Act of 1934, the Registrant      has      duly caused this report to be signed on its behalf by the undersigned, thereunto      duly authorized.**

**Caterpillar      Financial Services Corporation**

**(Registrant)**

| **Date:**August                5, 2005** ** | **By:**/s/                Steven R. Elsesser  |
|--------------------------------------------------|-----------------------------------------------|
|                                             | Steven                R. Elsesser, Controller |

| **Date:**August                5, 2005 | **By:**/s/                Kent M. Adams                                                       |
|----------------------------------------|-----------------------------------------------------------------------------------------------|
|                                   | Kent                M. Adams, President, Director, and Chief Executive                Officer |