CATERPILLAR FINANCIAL SERVICES CORP - 10-Q Quarterly Report

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 March 31, 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 x No o

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

Yes o No x

At May 2, 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 March 31, 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: First quarter 2005 vs. First Quarter 2004

Critical Accounting Policies

Three Months Ended March 31, 2005 Vs. Three Months Ended March 31, 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)

In addition to our accompanying unaudited consolidated financial statements, we suggest that you read our Annual Report on Form 10-K. Although not incorporated by reference in this document, additional information about us is available in our 2004 Annual Report and at http://www.catfinancial.com. The documents mentioned above are available by writing to: Legal Dept., Caterpillar Financial Services Corp.; 2120 West End Ave.; Nashville, TN 37203-0001.

Caterpillar Financial Services Corporation

Consolidated Statement of Financial Position

(Unaudited)

(Dollars in Millions, except share data)

		March 31,		December 31,		March 31,
		2005		2004		2004
Assets:
Cash and cash equivalents	$	104	$	98	$	89
Finance receivables
Retail notes receivable		4,604		4,580		4,368
Wholesale notes receivable		4,854		4,789		1,623
Notes receivable from Caterpillar		697		120		381
Finance leases and installment sale contracts - Retail		12,171		11,769		9,763
Finance leases and installment sale contracts - Wholesale		179		185		154
		22,505		21,443		16,289
Less: Unearned income		1,317		1,261		999
Allowance for credit losses		283		278		248
Total net finance receivables		20,905		19,904		15,042

Retained interests in securitized wholesale receivables		-		-		1,895

Equipment on operating leases,
less accumulated depreciation		2,509		2,569		2,274
Deferred income taxes		28		28		20
Other assets		997		973		1,242
Total assets	$	24,543	$	23,572	$	20,562


Liabilities and stockholder's equity:
Payable to dealers and others	$	220	$	221	$	151
Payable to Caterpillar - other		38		23		28
Accrued expenses		210		179		158
Income taxes payable		47		23		82
Payable to Caterpillar - borrowings		434		333		268
Short-term borrowings		5,364		5,464		4,599
Current maturities of long-term debt		3,225		3,519		3,392
Long-term debt		11,834		10,713		9,284
Deferred income taxes and other liabilities		398		377		255
Total liabilities		21,770		20,852		18,217

Common stock - $1 par value
Authorized: 2,000 shares; Issued and
outstanding: one share (at paid in amount)		745		745		745
Retained earnings		1,773		1,690		1,475
Accumulated other comprehensive income		255		285		125
Total stockholder's equity		2,773		2,720		2,345

Total liabilities and stockholder's equity	$	24,543	$	23,572	$	20,562

See Notes to Consolidated Financial Statements (unaudited).

Caterpillar Financial Services Corporation

Consolidated Statement of Profit

(Unaudited)

(Dollars in Millions)

	Three Months Ended
		March 31,		March 31,
		2005		2004
Revenues:
Wholesale	$	72	$	42
Retail finance		253		207
Operating lease		188		178
Other		30		30
Total revenues		543		457

Expenses:
Interest		173		121
Depreciation on assets leased to others		152		142
General, operating, and administrative		76		65
Provision for credit losses		16		20
Other		2		2
Total expenses		419		350

Profit before income taxes		124		107

Provision for income taxes		41		35