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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 2004
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To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 2004 and other pertinent
information prepared by management without audit by independent auditors are
submitted herewith.
Comparative net assets are as follows:
Mar. 31, 2004 Dec. 31, 2003 Mar. 31, 2003
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Net assets ................................................. $488,536,021 $478,959,218 $349,194,110
Net assets per share of Common Stock ....................... 24.89 24.32 18.18
Shares of Common Stock outstanding ....................... 19,631,277 19,692,777 19,207,784
Comparative operating results are as follows:
Three months ended March 31,
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2004 2003
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Net investment income ............................................................ $ 1,222,555 $ 880,683
Per share of Common Stock ...................................................... .06* .05*
Net realized gain on sale of investments ......................................... 16,501,813 5,410,861
Decrease in net unrealized appreciation of investments ........................... (6,817,589) (17,010,940)
Increase (decrease) in net assets resulting from operations ...................... 10,906,779 (10,719,396)
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* Per-share data are based on the average number of Common shares
outstanding during the three-month period.
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The annual meeting of stockholders of the Corporation was held on March
10, 2004 with 94% of Common shares being represented. At the meeting the Board
of Directors was reelected and the selection of KPMG LLP as auditors of the
Corporation for the year 2004 was ratified. Detailed information will be
published in the June 30, 2004 Semi-Annual Report.
In the quarter ended March 31, 2004 the Corporation repurchased 61,500
shares of its Common Stock at an average price per share of $21.63. These shares
were purchased on the American Stock Exchange. The Corporation may from time to
time purchase Common Stock in such amounts and at such prices as the Board of
Directors may deem advisable in the best interests of stockholders.
Stockholders' inquiries are welcome.
CENTRAL SECURITIES CORPORATION
WILMOT H. KIDD, President
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PRINCIPAL PORTFOLIO CHANGES
January 1 to March 31, 2004
(Common Stock unless specified otherwise)
Number of Shares
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Held
March 31,
Purchased Sold 2004
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Abbott Laboratories.................................... 100,000 100,000
Accenture Ltd.......................................... 120,000 400,000
American Management Systems, Inc....................... 1,255,498 364,502
Analog Devices, Inc.................................... 30,000 430,000
ArvinMeritor, Inc...................................... 100,000 600,000
The Bank of New York Company, Inc...................... 60,000 500,000
Capital One Financial Corporation...................... 60,000 370,000
Ceridian Corporation................................... 100,000 100,000
Convergys Corporation.................................. 220,000 1,220,000
FleetBoston Financial Corp............................. 100,000 --
Motorola, Inc.......................................... 130,000 200,000
Rohm and Haas Company.................................. 50,000 150,000
SunGard Data Systems Inc............................... 20,000 570,000
Unocal Corporation..................................... 150,000 150,000
TEN LARGEST INVESTMENTS
March 31, 2004
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% of Year First
Cost Value Net Assets Acquired
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(millions)
The Plymouth Rock Company, Inc............... $ 2.2 $58.9 12.1% 1982
Capital One Financial Corporation............ 1.8 27.9 5.7 1994
Intel Corporation............................ .4 26.7 5.5 1986
Flextronics International Ltd................ 3.8 20.7 4.2 1996
Analog Devices, Inc.......................... .5 20.6 4.2 1987
Brady Corporation............................ 2.3 19.6 4.0 1984
Murphy Oil Corporation....................... 3.1 18.9 3.9 1974
Convergys Corporation........................ 22.1 18.5 3.8 1998
Unisys Corporation........................... 12.6 16.4 3.4 1999
The Bank of New York Company, Inc............ 3.3 15.8 3.2 1993
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BOARD OF DIRECTORS
DONALD G. CALDER DUDLEY D. JOHNSON
President President
G. L. Ohrstrom & Co., Inc. Young & Franklin Inc.
New York, NY Liverpool, NY
JAY R. INGLIS WILMOT H. KIDD
Executive Vice President President
National Marine Underwriters, Inc.
New York, NY
C. CARTER WALKER, JR.
Washington, CT
OFFICERS
WILMOT H. KIDD, President
CHARLES N. EDGERTON, Vice President and Treasurer
MARLENE A. KRUMHOLZ, Secretary
OFFICE
630 Fifth Avenue, New York, NY 10111
212-698-2020
866-593-2507 (toll-free)
www.centralsecurities.com
CUSTODIAN
UMB Bank, N.A.
P.O. Box 419226, Kansas City, MO 64141-6226
TRANSFER AGENT AND REGISTRAR
EquiServe Trust Company
P. O. Box 43069, Providence, RI 02940-3069
781-575-2724
www.equiserve.com
INDEPENDENT AUDITORS
KPMG LLP
757 Third Avenue, New York, NY 10017
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