United States
Securities and Exchange Commission
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-00179
Central Securities Corporation
(Exact name of registrant as specified in charter)
630 Fifth Avenue, Suite 820
New York, N.Y. 10111
(Address of principal executive offices)
Registrant's telephone number including area code: 212-698-2020
Date of fiscal year end: December 31
Date of reporting period: September 30, 2005
Item 1. Schedule of Investments.
CENTRAL SECURITIES CORPORATION
Statement of Investments
September 30, 2005
(Unaudited)
PORTFOLIO SECURITIES 84.4%
STOCKS (COMMON UNLESS SPECIFIED OTHERWISE)
Prin. Amt.
or Shares Value
---------- -----
Banking and Finance 6.8%
500,000 The Bank of New York Company, Inc.............. $ 14,705,000
310,000 Capital One Financial Corporation.............. 24,651,200
------------
39,356,200
------------
Business Services 0.6%
500,000 Arbinet-thexchange Inc. (a).................... 3,600,000
------------
Chemicals 3.1%
100,000 The Dow Chemical Company....................... 4,167,000
1,200,000 PolyOne Corporation(a)......................... 7,272,000
150,000 Rohm and Haas Company.......................... 6,169,500
------------
17,608,500
------------
Communications 0.6%
800,000 Cincinnati Bell Inc.(a)........................ 3,528,000
------------
Electronics 15.3%
600,000 Agilent Technologies Inc. (a).................. . 19,650,000
430,000 Analog Devices, Inc............................ 15,970,200
200,000 Cyprus Semiconductor Corp...................... 3,010,000
1,000,000 Flextronics International Ltd.(a).............. 12,850,000
980,000 Intel Corporation.............................. 24,157,000
200,000 Motorola, Inc.................................. 4,406,000
2,000,000 Solectron Corporation(a)....................... 7,820,000
20,000 Virage Logic Corp.(a).......................... 155,775
------------
88,018,975
------------
Energy 15.1%
234,328 Chevron Corporation............................ 15,168,051
139,351 Kerr-McGee Corporation......................... 13,532,376
320,000 McMoRan Exploration Co.(a)..................... 6,220,800
600,000 Murphy Oil Corporation......................... 29,922,000
140,000 Nexen Inc...................................... 6,672,400
1,925,000 TransMontaigne Inc.(a)......................... 15,380,750
------------
86,896,377
------------
Health Care 3.4%
100,000 Abbott Laboratories............................. 4,240,000
100,000 Merck & Co. Inc. ............................... 2,721,000
100,000 Pfizer Inc...................................... 2,497,000
450,000 Schering-Plough Corporation..................... 9,472,500
140,000 Vical Inc.(a)................................... 688,800
------------
19,619,300
------------
Prin. Amt.
or Shares Value
---------- -----
Information Technology Services 10.7%
400,000 Accenture Ltd.(a)................................... 10,184,000
378,600 Ceridian Corporation(a)............................. 7,855,950
1,550,000 Convergys Corporation(a)............................ 22,273,500
1,025,400 The TriZetto Group, Inc.(a)......................... 14,478,648
1,000,000 Unisys Corporation(a)............................... 6,640,000
------------
61,432,098
------------
Insurance 18.9%
10,000 Erie Indemnity Co. Class A.......................... 527,500
70,000 The Plymouth Rock Company, Inc.
Class A(b)(c)(d)................................ 108,500,000
------------
109,027,500
------------
Manufacturing 9.3%
870,000 Brady Corporation Class A........................... 26,917,800
260,000 Dover Corporation................................... 10,605,400
410,000 Roper Industries, Inc............................... 16,108,900
------------
53,632,100
------------
Retail Trade 0.1%
28,751 AeroGroup International, Inc.(a)(c)(d)............... 542,531
------------
Transportation 0.5%
531,557 Transport Corporation of America, Inc.
Class B(a)(b)(c)................................... 3,202,099
------------
Miscellaneous 0.0%
Grumman Hill Investments, L.P.(a)(c)................ 0
------------
Total Portfolio Securities
(cost $289,473,828)...................... 486,463,680
SHORT-TERM INVESTMENTS 15.4%
Commercial Paper 9.7%
$6,571,000 American Express Credit Corp. 3.4912% due 11/2/05.... 6,550,732
20,281,000 Citigroup Funding 3.4158% - 3.6152%
due 10/12/05 - 11/30/05............................. 20,214,200
29,209,000 General Electric Capital Corp. 3.3653% - 3.5848%
due 10/5/05 - 11/23/05............................. 29,136,564
------------
55,901,496
U.S. Treasury Bills 5.7%
32,926,000 U.S. Treasury Bills 3.1472% - 3.6104%
due 10/20/05 - 2/23/06............................ 32,684,914
------------
Total Short-Term Investments
(cost $88,586,410).......................... 88,586,410
------------
Total Investments (99.8%)..................... 575,050,090
Cash, receivables and other assets
less liabilities (0.2%)..................... 966,480
------------
Net Assets (100%)............................. $576,016,570
============
(a) Non-dividend paying.
(b) Affiliate as defined in the Investment Company Act of 1940.
(c) Valued at estimated fair value.
(d) Restricted security. See footnote 2.
See accompanying notes to statement of investments.
CENTRAL SECURITIES CORPORATION
NOTES TO STATEMENT OF INVESTMENTS
1. Security Valuation - Securities are valued at the last sale price or, if
unavailable, at the closing bid price. Corporate discount notes are valued at
amortized cost, which approximates value. Securities for which no ready market
exists are valued at estimated fair value by the Board of Directors.
As of September 30, 2005, the tax cost of investments was $289,473,828. Net
unrealized appreciation was $285,576,264 consisting of gross unrealized
appreciation and gross unrealized depreciation of $300,013,474 and $10,539,646,
respectively.
2. Restricted Securities - The Corporation from time to time invests in
securities the resale of which is restricted. On September 30, 2005, such
investments had an aggregate value of $109,042,531, which was equal to 18.9% of
the Corporation's net assets. Investments in restricted securities at September
30, 2005, including the acquisition dates and cost, were:
Company Shares Security Date Purchased Cost
------- ------ -------- -------------- ----
AeroGroup International, Inc. 28,751 Common Stock 6/21/05 $17,200
Grumman Hill Investments, L.P. L.P. Interest 9/11/85 0
The Plymouth Rock Company, Inc. 70,000 Class A Common Stock 12/15/82 1,500,000
6/9/84 699,986
The Corporation does not have the right to demand registration of the restricted
securities.
Item 2. Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial
Officers have concluded that the Registrant's Disclosure Controls and Procedures
are effective based on their evaluation of the Disclosure Controls and
Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. During the last fiscal quarter,
there was no significant change in the Registrant's internal control over
financial reporting that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 3. Exhibits.
(a) Certifications.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
CENTRAL SECURITIES CORPORATION
By: /s/ Wilmot H. Kidd
------------------
President
Date: October 27, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Wilmot H. Kidd
------------------
President
Date: October 27, 2005
By: /s/ Charles N. Edgerton
--------------------------------
Vice President and Treasurer
Date: October 27, 2005