Caterpillar Financial Services 10-Q 2006 Q2 Quarterly report

 EXHIBIT 12

CATERPILLAR FINANCIAL SERVICES CORPORATION

COMPUTATION OF RATIO OF PROFIT TO FIXED CHARGES

(Unaudited)

(Millions of Dollars)

	Three Month Ended						Six Months Ended
		June 30,			June 30			June 30,			June 30
		2006			2005			2006			2005
Net Income	$	106		$	90		$	224		$	173
Add:
Provision for income taxes		49			48			104			89
Deduct:
Equity in profit of partnerships		(1	)		(2	)		(2	)		(4	)
Profit before taxes(1)	$	154		$	136		$	326		$	258
Fixed charges:
Interest on borrowed funds	$	258		$	188		$	491		$	361
Rentals at computed interest(2)		2			2			3			3
Total fixed charges	$	260		$	190		$	494		$	364
Profit before taxes plus fixed charges	$	414		$	326		$	820		$	622
Ratio of profit before taxes plus fixed charges to fixed charges		1.59			1.72			1.66			1.71

⁽¹⁾ Profit before taxes excludes equity in profit of partnerships.

⁽²⁾ Those portions of rent expense that are representative of interest cost.