**UNITED        STATES **

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-Q/A**

**(Amendment        No. 1) **

**For        the quarterly period ended **
**March        31, 2006**

**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 **
**x**
**        No **
**o**

**Indicate        by check mark whether the Registrant is a large accelerated filer, an        accelerated filer, or a non-accelerated filer. See definition of "accelerated        filer and large accelerated filer" in Rule 12b-2 of the Exchange Act). (Check        one):**

**Large        Accelerated Filer **
**ྈ        **
**Accelerated        Filer**
** **
**ྈ**
**        Non-Accelerated Filer **
**x**
** **

**Indicate        by check mark whether the registrant is a shell company (as defined in Rule        12b-2 of the Exchange Act. Yes **
**o**
**        No **
**x**

**At        May 4, 2006, 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 March 31, 2006**

**Explanatory        Note**

| ·   | Part                I - Item 1 - Consolidated Financial Statements                (Unaudited) |
|--------------------|-----------------------------------------------------------------------------------------------|
| ·   | Part                I - Item 2 - Management’s Discussion and Analysis of Financial Condition                and Results of Operation Overview: First Quarter 2006 vs. First Quarter                2005 |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Part                I - Item 4 - Controls and Procedures |
|--------------------|----------------------------------------------------------|
| ·   | Part                II - Item 6 - Exhibits |
|--------------------|--------------------------------------------|

**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:        First Quarter 2006 vs. First Quarter        2005

Forward-Looking        Statements

Critical        Accounting Policies

Three        Months Ended March 31, 2006 vs. Three Months Ended March        31, 2005

Capital        Resources and Liquidity

Item        4. Controls and Procedures

**PART        II. OTHER INFORMATION**

Item        1. Legal Proceedings

Item        1A. Risk Factors

Item        5. Other Information

Item        6. Exhibits 

Signatures

----

**Part        I. FINANCIAL INFORMATION**

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

----

**UNAUDITED**

**Caterpillar        Financial Services Corporation**

**CONSOLIDATED        STATEMENT OF PROFIT **

|                    |   | **Three                  Months Ended**    |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|
|                                                                                                         |   |                                                      | **March                  31,**  |   |   | **March                  31,** |   |
|                                                                                                         |   |                                                      | **2006** |   |   | **2005** |   |
| **Revenues:**                                                                                                |   |                                                      |   |   |   |   |   |
| Wholesale                  finance                                                                           |   | $                                                         | 103 |   | $ | 72 |   |
| Retail                  finance                                                                              |   |                                                      | 308 |   |   | 253 |   |
| Operating                  lease                                                                             |   |                                                      | 199 |   |   | 188 |   |
| Other                                                                                                        |   |                                                      | 47 |   |   | 30 |   |
| Total                  revenues                                                                              |   |                                                      | 657 |   |   | 543 |   |
|                                                                                                         |   |                                                      |   |   |   |   |   |
| **Expenses:**                                                                                                |   |                                                      |   |   |   |   |   |
| Interest                                                                                                     |   |                                                      | 233 |   |   | 173 |   |
| Depreciation                  on assets leased to others                                                     |   |                                                      | 158 |   |   | 152 |   |
| General,                  operating, and administrative                                                      |   |                                                      | 80 |   |   | 76 |   |
| Provision                  for credit losses                                                                 |   |                                                      | 12 |   |   | 16 |   |
| Other                                                                                                        |   |                                                      | 1 |   |   | 2 |   |
| Total                  expenses                                                                              |   |                                                      | 484 |   |   | 419 |   |
|                                                                                                         |   |                                                      |   |   |   |   |   |
| **Profit                  before income taxes**                                                              |   |                                                      | 173 |   |   | 124 |   |
|                                                                                                         |   |                                                      |   |   |   |   |   |
| Provision                  for income taxes                                                                  |   |                                                      | 55 |   |   | 41 |   |
| **Profit**                                                                                                   |   | $                                                         | 118 |   | $ | 83 |   |
|                                                                                                         |   |                                                      |   |   |   |   |   |

*See        Notes to Consolidated Financial Statements (unaudited).*

----

**UNAUDITED**

**Caterpillar        Financial Services Corporation**

**CONSOLIDATED        STATEMENT OF FINANCIAL        POSITION**
** **

|                                                                       |   |   | March                31,   |   |   | **December                  31,** |   |
|----------------------------------------------------------------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------|--------|
|                                                                       |   |   | **2006**                        |   |   | **2005**                          |   |
| **Assets:**                                                                |   |   |                            |   |   |                              |   |
| Cash                  and cash equivalents                                 |   | $      | 76                              |   | $      | 87                                |   |
| Finance                  receivables                                       |   |   |                            |   |   |                              |   |
| Retail                  notes receivable                                   |   |   | 4,808                           |   |   | 4,916                             |   |
| Wholesale                  notes receivable                                |   |   | 5,555                           |   |   | 5,328                             |   |
| Notes                  receivable from Caterpillar                         |   |   | 86                              |   |   | 88                                |   |
| Finance                  leases and installment sale contracts - Retail    |   |   | 13,831                          |   |   | 13,348                            |   |
| Finance                  leases and installment sale contracts - Wholesale |   |   | 350                             |   |   | 353                               |   |
|                                                                       |   |   | 24,630                          |   |   | 24,033                            |   |
| Less:                  Unearned income                                     |   |   | 1,670                           |   |   | 1,549                             |   |
| Allowance                  for credit losses                               |   |   | 309                             |   |   | 302                               |   |
| Total                  net finance receivables                             |   |   | 22,651                          |   |   | 22,182                            |   |
|                                                                       |   |   |                            |   |   |                              |   |
| Equipment                  on operating leases,                            |   |   |                            |   |   |                              |   |
| less                  accumulated depreciation                             |   |   | 2,548                           |   |   | 2,631                             |   |
| Deferred                  income taxes                                     |   |   | 34                              |   |   | 33                                |   |
| Other                  assets                                              |   |   | 924                             |   |   | 966                               |   |
| **Total                  assets**                                          |   | $      | 26,233                          |   | $      | 25,899                            |   |
|                                                                       |   |   |                            |   |   |                              |   |
| **Liabilities                  and stockholder's equity:**                 |   |   |                            |   |   |                              |   |
| Payable                  to dealers and others                             |   | $      | 183                             |   | $      | 221                               |   |
| Payable                  to Caterpillar - other                            |   |   | 35                              |   |   | 25                                |   |
| Accrued                  expenses                                          |   |   | 328                             |   |   | 283                               |   |
| Income                  taxes payable                                      |   |   | 65                              |   |   | 69                                |   |
| Payable                  to Caterpillar - borrowings                       |   |   | 96                              |   |   | 199                               |   |
| Short-term                  borrowings                                     |   |   | 5,345                           |   |   | 4,997                             |   |
| Current                  maturities of long-term debt                      |   |   | 4,332                           |   |   | 4,153                             |   |
| Long-term                  debt                                            |   |   | 12,342                          |   |   | 12,611                            |   |
| Deferred                  income taxes and other liabilities               |   |   | 389                             |   |   | 375                               |   |
| **Total                  liabilities**                                     |   |   | 23,115                          |   |   | 22,933                            |   |
|                                                                       |   |   |                            |   |   |                              |   |
| Common                  stock - $1 par value                               |   |   |                            |   |   |                              |   |
| Authorized:                  2,000 shares; Issued and                      |   |   |                            |   |   |                              |   |
| outstanding:                  one share (at paid in amount)                |   |   | 745                             |   |   | 745                               |   |
| Retained                  earnings                                         |   |   | 2,172                           |   |   | 2,054                             |   |
| Accumulated                  other comprehensive income                    |   |   | 201                             |   |   | 167                               |   |
| **Total                  stockholder's equity**                            |   |   | 3,118                           |   |   | 2,966                             |   |
|                                                                       |   |   |                            |   |   |                              |   |
| **Total                  liabilities and stockholder's equity**            |   | $      | 26,233                          |   | $      | 25,899                            |   |

*See        Notes to Consolidated Financial Statements (unaudited).*

----

**UNAUDITED**

**Caterpillar        Financial Services Corporation**

**CONSOLIDATED        STATEMENT OF CHANGES IN STOCKHOLDER'S        EQUITY**

|                                               |   | ** Three                  Months Ended**                                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                           |   | **March                  31,**                                                                                                                | **March                  31,       ** |
|                                                                                                                                                                                                                                                                           |   | **           2006            ** | **      2005            ** |
|                                                                                                                                                                                                                                                                           |   |                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Common                  stock - one share (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                                                                                                                                                                                                                                  |   |                                                                                                                                               | 2,054 |   |   |   |   |   | 1,690 |   |   |   |   |
| Profit                                                                                                                                                                                                                                                                         |   |                                                                                                                                               | 118 |   | $ | 118 |   |   | 83 |   | $ | 83 |   |
| Balance                  at end of period                                                                                                                                                                                                                                      |   |                                                                                                                                               | 2,172 |   |   |   |   |   | 1,773 |   |   |   |   |
|                                                                                                                                                                                                                                                                           |   |                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Accumulated                  other comprehensive income/(loss):**                                                                                                                                                                                                            |   |                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                  currency translation adjustment                                                                                                                                                                                                                       |   |                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at beginning of year                                                                                                                                                                                                                                  |   |                                                                                                                                               | 141 |   |   |   |   |   | 278 |   |   |   |   |
| Aggregate                  adjustment for the period                                                                                                                                                                                                                           |   |                                                                                                                                               | 26 |   |   | 26 |   |   | (49 | ) |   | (49 | ) |
| Balance                  at end of period                                                                                                                                                                                                                                      |   |                                                                                                                                               | 167 |   |   |   |   |   | 229 |   |   |   |   |
| Interest                  rate derivative instruments (net of tax)                                                                                                                                                                                                             |   |                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at beginning of year net of tax of: 2006 - $13; 2005 - $1                                                                                                                                                                                             |   |                                                                                                                                               | 22 |   |   |   |   |   | - |   |   |   |   |
| Gains/(Losses)                  deferred during the period net                  of tax of: 2006 - $8; 2005 - $(2)                                                                                                                                                              |   |                                                                                                                                               | 14 |   |   | 14 |   |   | (3 | ) |   | (3 | ) |
| (Gains)/Losses                  reclassed to earnings during the period net                  of tax of: 2006 - $(3); 2005 - $14                                                                                                                                                |   |                                                                                                                                               | (5 | ) |   | (5 | ) |   | 23 |   |   | 23 |   |
| Balance                  at end of period net of tax of: 2006 - $18, 2005 - $13                                                                                                                                                                                                |   |                                                                                                                                               | 31 |   |   |   |   |   | 20 |   |   |   |   |
| Other                  instruments (net of tax)                                                                                                                                                                                                                                |   |                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at beginning of year                                                                                                                                                                                                                                  |   |                                                                                                                                               | 4 |   |   |   |   |   | 7 |   |   |   |   |
| Aggregate                  adjustment for the period                                                                                                                                                                                                                           |   |                                                                                                                                               | **(**1 | ) |   | (1 | ) |   | (1 | ) |   | (1 | ) |
| Balance                  at end of period                                                                                                                                                                                                                                      |   |                                                                                                                                               | 3 |   |   |   |   |   | 6 |   |   |   |   |
| **Total                  accumulated other comprehensive income**                                                                                                                                                                                                              |   |                                                                                                                                               | 201 |   |   |   |   |   | 255 |   |   |   |   |
|                                                                                                                                                                                                                                                                           |   |                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Comprehensive                  income**                                                                                                                                                                                                                                      |   |                                                                                                                                               |   |   | $ | 152 |   |   |   |   | $ | 53 |   |
|                                                                                                                                                                                                                                                                           |   |                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Total                  stockholder’s equity at end of period**                                                                                                                                                                                                         |   | $                                                                                                                                                  | 3,118 |   |   |   |   | $ | 2,773 |   |   |   |   |

*See        Notes to Consolidated Financial Statements (unaudited).*

----

**UNAUDITED**

**Caterpillar          Financial Services Corporation**

**CONSOLIDATED          STATEMENT OF CASH FLOWS**

|                                                                                                          |   | **        Three                  Months                  Ended        ** |                                            |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
|                                                                                                          |   |                                                                                                                                                     | **March                  31, 2006**        |   |   | **March                  31****,****2005** |   |
|                                                                                                               |   |                                                                                                                                                     | (As                restated - See Note A)  |   |   |   |   |
| **Cash                  flows from operating activities:**                                                    |   |                                                                                                                                                     |                                            |   |   |   |   |
| Profit                                                                                                        |   | $                                                                                                                                                        | 118                                             |   | $ | 83 |   |
| Adjustments                  for non-cash items:                                                              |   |                                                                                                                                                     |                                            |   |   |   |   |
| Depreciation                  of equipment on operating leases and non-leased equipment                       |   |                                                                                                                                                     | 163                                             |   |   | 157 |   |
| Amortization                  of purchase discount                                                            |   |                                                                                                                                                     | (79                                             | ) |   | (45 | ) |
| Provision                  for credit losses                                                                  |   |                                                                                                                                                     | 12                                              |   |   | 16 |   |
| Gain                  on sale of receivables                                                                  |   |                                                                                                                                                     | (7                                              | ) |   | (1 | ) |
| Other,                  net                                                                                   |   |                                                                                                                                                     | (25                                             | ) |   | (10 | ) |
| Change                  in assets and liabilities:                                                            |   |                                                                                                                                                     |                                            |   |   |   |   |
| Receivables                  from customers and others                                                        |   |                                                                                                                                                     | (1                                              | ) |   | (3 | ) |
| Other                  receivables/payables with Caterpillar                                                  |   |                                                                                                                                                     | 8                                               |   |   | 12 |   |
| Payable                  to dealers and others                                                                |   |                                                                                                                                                     | (43                                             | ) |   | 2 |   |
| Accrued                  expenses and other liabilities, net                                                  |   |                                                                                                                                                     | 3                                               |   |   | 30 |   |
| Income                  taxes payable                                                                         |   |                                                                                                                                                     | (4                                              | ) |   | 24 |   |
| Other                  assets                                                                                 |   |                                                                                                                                                     | (4                                              | ) |   | - |   |
| Net                  cash provided by operating activities                                                    |   |                                                                                                                                                     | 141                                             |   |   | 265 |   |
| **Cash                  flows from investing activities:**                                                    |   |                                                                                                                                                     |                                            |   |   |   |   |
| Expenditures                  for equipment on operating leases and for non-leased                  equipment |   |                                                                                                                                                     | (264                                            | ) |   | (244 | ) |
| Proceeds                  from disposals of equipment                                                         |   |                                                                                                                                                     | 249                                             |   |   | 175 |   |
| Additions                  to finance receivables                                                             |   |                                                                                                                                                     | (8,566                                          | ) |   | (7,090 | ) |
| Collections                  of finance receivables                                                           |   |                                                                                                                                                     | 7,946                                           |   |   | 6,414 |   |
| Proceeds                  from sales of receivables                                                           |   |                                                                                                                                                     | 272                                             |   |   | 10 |   |
| Notes                  receivable from Caterpillar                                                            |   |                                                                                                                                                     | 3                                               |   |   | (577 | ) |
| Investment                  in partnerships                                                                   |   |                                                                                                                                                     | -                                               |   |   | (2 | ) |
| Other,                  net                                                                                   |   |                                                                                                                                                     | 61                                              |   |   | 4 |   |
| Net                  cash used for investing activities                                                       |   |                                                                                                                                                     | (299                                            | ) |   | (1,310 | ) |
| **Cash                  flows from financing activities:**                                                    |   |                                                                                                                                                     |                                            |   |   |   |   |
| Payable                  to Caterpillar - borrowings                                                          |   |                                                                                                                                                     | (102                                            | ) |   | 109 |   |
| Proceeds                  from debt issued (original maturities greater than 3                  months)       |   |                                                                                                                                                     | 2,054                                           |   |   | 3,468 |   |
| Payments                  on debt issued (original maturities greater than 3 months)                          |   |                                                                                                                                                     | (2,800                                          | ) |   | (2,691 | ) |
| Short-term                  borrowings (original maturities three months or less) -                  net      |   |                                                                                                                                                     | 1,007                                           |   |   | 166 |   |
| Net                  cash provided by financing activities                                                    |   |                                                                                                                                                     | 159                                             |   |   | 1,052 |   |
| Effect                  of exchange rate changes on cash                                                      |   |                                                                                                                                                     | (12                                             | ) |   | (1 | ) |
|                                                                                                          |   |                                                                                                                                                     |                                            |   |   |   |   |
| **(Decrease)/Increase                  in cash and cash equivalents**                                         |   |                                                                                                                                                     | (11                                             | ) |   | 6 |   |
| Cash                  and cash equivalents at beginning of year                                               |   |                                                                                                                                                     | 87                                              |   |   | 98 |   |
|                                                                                                          |   |                                                                                                                                                     |                                            |   |   |   |   |
| Cash                  and cash equivalents at end of period                                                   |   | $                                                                                                                                                        | 76                                              |   | $ | 104 |   |

*See        Notes to Consolidated Financial Statements (unaudited*

----

**Notes        to Consolidated Financial        Statements**

**A.        Restatement**

|                                                                                                      |   | **As                  Reported** |   |   | **As                  Restated** |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                |   |                             |   |   |                             |   |   |   |
| Other,                  net                                                                               |   | $                                | 24     |   |                             | $      | (25 | ) |
| Accrued                  expenses and other liabilities, net                                              |   | $                                | 2      |   |                             | $      | 3 |   |
| Net                  cash provided by operating activities                                                |   | $                                | 189    |   |                             | $      | 141 |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                           |   |                             |   |   |                             |   |   |   |
| Payments                  on debt issued (original maturities greater than 3 months)                      |   | $                                | (2,821 | )      |                             | $      | (2,800 | ) |
| Short-term                  borrowings (original maturities three months or less) --                  net |   | $                                | 980    |   |                             | $      | 1,007 |   |
| Net                  cash provided by financing activities                                                |   | $                                | 111    |   |                             | $      | 159 |   |

| **B.** | **Basis                  of presentation** |
|--------|--------------------------------------------|

| **C.** | **Segment                  information** |
|--------|------------------------------------------|

| ·   | 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.                                                                                                                                                                                                                                                                                      |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | 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.                                                                                                                                                                                                                                                      |
| ·   | 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.                                                         |
| ·   | Asia-Pacific:                  We have offices in Australia, New Zealand, and Asia that serve                  local                  dealers and customers.                                                                                                                                                                                                                                                                                                                                                                                        |
| ·   | 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                  and                  components included in these systems), as well as non-Caterpillar                  equipment that                  is                  powered by Caterpillar engines, for all countries.  |

**Supplemental        segment data for the three months ended March 31,**

| **2006**                               |   |   | **North****America** |   |   | **Europe** |   |   | **Diversified****Services** |   |   | **Asia-Pacific** |   |   | **Cat                  Power****Finance** |   |   | **Total** |   |
|----------------------------------------|--------|--------|----------------------|--------|--------|------------|--------|--------|-----------------------------|--------|--------|------------------|--------|--------|-------------------------------------------|--------|--------|-----------|--------|
| External                  revenue      |   | $      | 404                  |   |   | 82         |   |   | 90                          |   |   | 62               |   |   | 19                                        |   | $      | 657       |   |
| Inter-segment                  revenue |   | $      | 11                   |   |   | -          |   |   | -                           |   |   | -                |   |   | -                                         |   | $      | 11        |   |
| Profit                                 |   | $      | 64                   |   |   | 18         |   |   | 16                          |   |   | 15               |   |   | 5                                         |   | $      | 118       |   |
| Assets                                 |   | $      | 16,022               |   |   | 4,060      |   |   | 4,988                       |   |   | 2,014            |   |   | 1,307                                     |   | $      | 28,391    |   |
|                                   |   |   |                 |   |   |       |   |   |                        |   |   |             |   |   |                                      |   |   |      |   |
| **2005**                               |   |   | **North****America** |   |   | **Europe** |   |   | **Diversified****Services** |   |   | **Asia-Pacific** |   |   | **Cat                  Power****Finance** |   |   | **Total** |   |
| External                  revenue      |   | $      | 318                  |   |   | 90         |   |   | 67                          |   |   | 43               |   |   | 25                                        |   | $      | 543       |   |
| Inter-segment                  revenue |   | $      | 6                    |   |   | -          |   |   | -                           |   |   | -                |   |   | -                                         |   | $      | 6         |   |
| Profit                                 |   | $      | 44                   |   |   | 17         |   |   | 9                           |   |   | 4                |   |   | 9                                         |   | $      | 83        |   |
| Assets                                 |   | $      | 13,916               |   |   | 4,408      |   |   | 4,843                       |   |   | 1,830            |   |   | 1,481                                     |   | $      | 26,478    |   |

| **Reconciliation                  of assets:** |   |   | **March                  31, 2006** |   |   | **March                  31, 2005** |   |
|------------------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
| Assets                  from segments          |   | $      | 28,391                              |   | $      | 26,478                              |   |
| Investment                  in subsidiaries    |   |   | (949                                | )      |   | (926                                | )      |
| Inter-segment                  balances        |   |   | (1,209                              | )      |   | (1,009                              | )      |
| Total                  assets                  |   | $      | 26,233                              |   | $      | 24,543                              |   |

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

***Foreign        Currency Exchange Rate Risk***

***Interest        Rate Risk***

|                                                                                                                   |   | **                    Three Months                  Ended                                     March                  31,                     **  |
|------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                                    | **2006** |   |   | **2005** |   |
| Gain/(loss)                  on designated interest rate derivatives—included in Other                  revenues |   | $                                                                                                                                                                                                                                                                                                                                                                       | (50 | ) | $ | (47 | ) |
| Gain/(loss)                  on hedged debt—included in Other revenues                                           |   |                                                                                                                                                                                                                                                                                                                                                                    | 50 |   |   | 47 |   |
| Amortization                  of the gain on liquidated swaps—included in Interest                  expense      |   |                                                                                                                                                                                                                                                                                                                                                                    | 2 |   |   | 1 |   |

| **E.** | **Guarantees** |
|--------|----------------|

|                                       |   |   | **March                  31, 2006 ** |   |   | **December                  31,****2005** |   |
|------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|-------------------------------------------|--------|
| Guarantees                  with Caterpillar dealers |   | $      | 439                                       |   | $      | 434                                       |   |
| Guarantees                  with Customers           |   |   | 36                                        |   |   | 37                                        |   |
| Limited                  Indemnity                   |   |   | 38                                        |   |   | 40                                        |   |
| Guarantees                  - other                  |   |   | 3                                         |   |   | 3                                         |   |
|                                                 |   |   |                                      |   |   |                                      |   |
| Total                  guarantees                    |   | $      | 516                                       |   | $      | 514                                       |   |

**F.        Contingencies**

| **G.** | **Sales                  and Servicing of Finance                  Receivables** |
|--------|----------------------------------------------------------------------------------|

***Securitized        Retail Installment Sales Contracts and Finance Leases.***

***Sale        of Interests in Wholesale Receivables.***

***Other        Managed Assets***

**H.        New Accounting Pronouncements**

----

**UNAUDITED**

**ITEM        2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND        RESULTS OF OPERATION (AS RESTATED - SEE NOTE A )**

**Overview:        First Quarter 2006 VS. First Quarter 200****5**

**(Dollars        in millions)**

| ·   | Revenues                for the first quarter of 2006 were a record $657, an increase of                $114 or                21% compared with the same period in 2005. Of the increase in revenues,                $51 resulted from the impact of continued growth of finance receivables                and operating leases (earning assets), $50 from the impact of higher                interest rates on new and existing finance receivables, $7 higher                net gain                on returned or repossessed equipment and a $6 increase in various                other                revenue items. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Profit                after tax was a record $118, an increase of $35 or 42% over the first                quarter of 2005. On a pre-tax basis, profit was up $49 or 40% compared                with the first quarter of 2005, principally due to an increase of                $35 in                margin (wholesale, retail finance, operating lease, and associated                fee                revenues less interest expense and depreciation on assets leased                to                others), a $2,211 increase in average earning assets and an improved                spread between earning asset yield and funding cost. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | New                retail financing of $2,625, an increase of $182 or 7% over the first                quarter of 2005, was a record first quarter. The increase was largely                the                result of an increase in earning assets in the North America                segment. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Past                dues over 30 days as of March 31, 2006 were 1.58% compared to 1.91%                at                March 31, 2005. The reduction was due to improved performance in                a number                of segments. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Write-offs,                net of recoveries, were $8 during the quarter compared with $5 for                the                first quarter of 2005. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

**REVIEW        OF CONSOLIDATED STATEMENT OF PROFIT**

**(Dollars        in millions)**

**THREE        MONTHS ENDED MARCH 31, 2006 VS. THREE MONTHS ENDED****MARCH        31, 2005**

**Revenues**

|                                                                                                     |   | **                      Three Months                  Ended                   ****March                  31,                                                          **  |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                            | **2006** |   |   | **2005** |   |
| Finance                  receivable and operating lease fees (including late                  charges)   |   | $                                                                                                                                                                                                                                                                                                                                                                                                               | 17 |   | $ | 14 |   |
| Net                  gain on returned or repossessed equipment                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                            | 11 |   |   | 4 |   |
| Gain                  on sale of receivables and securities                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                            | 7 |   |   | 1 |   |
| Income                  related to retained interests in securitized retail                  receivables |   |                                                                                                                                                                                                                                                                                                                                                                                                            | 5 |   |   | 3 |   |
| Service                  fee income on sold receivables                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                            | 3 |   |   | 2 |   |
| Forward                  points on foreign exchange contracts                                            |   |                                                                                                                                                                                                                                                                                                                                                                                                            | 2 |   |   | 2 |   |
| Partnership/dividend                  income                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                            | 1 |   |   | 3 |   |
| Currency                  exchange gain/(loss)                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                            | 1 |   |   | (1 | ) |
| Miscellaneous                  other revenue, net                                                        |   |                                                                                                                                                                                                                                                                                                                                                                                                            | - |   |   | 2 |   |
| Total                  other revenue                                                                     |   | $                                                                                                                                                                                                                                                                                                                                                                                                               | 47 |   | $ | 30 |   |

**EXPENSES**

**PROFIT**

**REVIEW        OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION**

**(Dollars        in millions)**

**ASSETS**

**TOTAL        OFF-BALANCE SHEET MANAGED ASSETS**

|                                                            |   |   | **March                  31,   2006**  |   |   | **December                  31,****  ****                         2005         ** |   |
|----------------------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Installment                  sale contracts securitized              |   | $      | 796                                                   |   | $      | 934                                                                                                                                                                         |   |
| Finance                  leases securitized                          |   |   | 38                                                    |   |   | 46                                                                                                                                                                          |   |
| Less:                  retained interests (included in Other assets) |   |   | (72                                                   | )      |   | (72                                                                                                                                                                         | )      |
| Off-balance-sheet                  securitized retail receivables    |   |   | 762                                                   |   |   | 908                                                                                                                                                                         |   |
| Wholesale                  receivables sold                          |   |   | 240                                                   |   |   | 240                                                                                                                                                                         |   |
| Other                  managed receivables/leases*                   |   |   | 286                                                   |   |   | 237                                                                                                                                                                         |   |
| Total                  off-balance sheet managed assets              |   | $      | 1,288                                                 |   | $      | 1,385                                                                                                                                                                       |   |

|                                                         |   |   | **March                  31,  2006**  |   |   | **December 31,****                         ****2005        ** |   |
|---------------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Finance                  leases                         |   | $      | 88                                              |   | $      | 89                                                                                                                                            |   |
| Installment                  sale contracts             |   |   | 61                                              |   |   | 49                                                                                                                                            |   |
| Operating                  leases                       |   |   | 113                                             |   |   | 76                                                                                                                                            |   |
| Retail                  notes receivable                |   |   | 24                                              |   |   | 23                                                                                                                                            |   |
| Total                  other managed receivables/leases |   | $      | 286                                             |   | $      | 237                                                                                                                                           |   |

**ALLOWANCE        FOR CREDIT LOSSES**

|                                                                   |   | **                       Three Months Ended                               March                  31,    **  |
|-------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                              |   |                                                                                                                                                                                                                      | **2006** |   |   | **2005** |   |
| Balance                  at beginning of quarter                  |   | $                                                                                                                                                                                                                         | 302 |   | $ | 278 |   |
| Provision                  for credit losses                      |   |                                                                                                                                                                                                                      | 12 |   |   | 16 |   |
| Receivables                  written off                          |   |                                                                                                                                                                                                                      | (12 | ) |   | (9 | ) |
| Recoveries                  on receivables previously written off |   |                                                                                                                                                                                                                      | 4 |   |   | 4 |   |
| Adjustment                  related to sale of receivables        |   |                                                                                                                                                                                                                      | - |   |   | (1 | ) |
| Foreign                  currency translation adjustment          |   |                                                                                                                                                                                                                      | 3 |   |   | (5 | ) |
| Balance                  at end of the period                     |   | $                                                                                                                                                                                                                         | 309 |   | $ | 283 |   |

**PAST        DUE FINANCE AND RENTS RECEIVABLES **

**CAPITAL        RESOURCES AND LIQUIDITY**

|                                                 |   |   | **March                    31,  2006**  |   |   | **December                    31,**** ****                     2005** |   |
|---------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|
| Medium-term                    notes, net of unamortized discount   |   | $      | 16,066                                            |   | $      | 16,180                                                                          |   |
| Commercial                    paper                                 |   |   | 4,633                                             |   |   | 4,235                                                                           |   |
| Long-term                    bank borrowings                        |   |   | 600                                               |   |   | 576                                                                             |   |
| Variable                    denomination floating rate demand notes |   |   | 504                                               |   |   | 505                                                                             |   |
| Short-term                    bank borrowings                       |   |   | 208                                               |   |   | 257                                                                             |   |
| Notes                    payable to Caterpillar                     |   |   | 96                                                |   |   | 199                                                                             |   |
| Loans                    from a company-owned partnership           |   |   | 8                                                 |   |   | 8                                                                               |   |
| Total                    outstanding borrowings                     |   | $      | 22,115                                            |   | $      | 21,960                                                                          |   |

***Medium-term        notes.***

***Commercial        paper.***

***Revolving        credit facilities.***

***Variable        denomination floating rate demand notes.***

***Variable        amount lending agreements with Caterpillar.***
* *

***Bank        Borrowings.***

***Off-balance        sheet arrangements.***

***Cash        flows.***
** **

**CRITICAL        ACCOUNTING POLICIES**

**Residual        Value**

**Allowance        for Credit Losses **

**FORWARD        LOOKING STATEMENTS**

----

**UNAUDITED**

**ITEM        4. CONTROLS AND        PROCEDURES**

**Evaluation        of disclosure controls and procedures**

**Changes        in Internal Control over Financial Reporting**

----

**UNAUDITED**

**Plan        for Remediation of Material Weakness**

**PART        II. OTHER INFORMATION**

**ITEM        1. LEGAL PROCEEDINGS**

**ITEM        1A. RISK FACTORS**

**ITEM        5. OTHER INFORMATION**

**ITEM        6. EXHIBITS**

| Exhibit                  No. | Description                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12                           | Statement                  Setting Forth Computation of Ratio of Profit to Fixed Charges of                  Caterpillar Financial Services Corporation and subsidiaries. The                  ratios                  were 1.74 and 1.70 for the three months ended March 31, 2006 and                  2005,                  respectively.                                                                                                           |
|                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 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**

|  **Date:**August                  2, 2006** ** | **By:_____________________**                    |
|----------------------------------------------------------|-------------------------------------------------|
|                                                     | Steven                  R. Elsesser, Controller |

| **Date:**August                  2, 2006 | **By:_____________________**                                                                      |
|------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                     | Kent                  M. Adams, President, Director, and Chief Executive                  Officer |