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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF SEPTEMBER 30, 2006
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To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended September 30, 2006 prepared by
management without audit by our independent registered public accounting firm
and other pertinent information are submitted herewith.
Comparative market values of net assets are as follows:
Sept. 30, 2006 June 30, 2006 Dec. 31, 2005
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Net assets ....................................... $588,315,485 $600,191,449 $573,979,905
Net assets per share of Common Stock 29.91 29.69 27.65
Shares of Common Stock outstanding ......... 19,670,606 20,215,359 20,762,159
Comparative operating results are as follows:
Nine months ended September 30,
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2006 2005
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Net investment income ............................................ $ 7,018,095 $ 5,218,175
Per share of Common Stock .................................. .35* .26*
Net realized gain on sale of investments ......................... 34,340,340 33,854,099
Increase in net unrealized appreciation of investments ........... 4,366,522 13,866,084
Increase in net assets resulting from operations ................. 45,724,957 52,938,358
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* Per-share data are based on the average number of Common shares
outstanding during the nine-month period.
In the quarter ended September 30, 2006 the Corporation repurchased
544,753 shares of its Common Stock at an average price of $25.41. 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. Purchases may be made on the American Stock Exchange or in
transactions directly with stockholders.
Stockholders' inquiries are welcome.
CENTRAL SECURITIES CORPORATION
WILMOT H. KIDD, President
630 Fifth Avenue
New York, NY 10111
October 17, 2006
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PRINCIPAL PORTFOLIO CHANGES
July 1 to September 30, 2006
(Common Stock unless specified otherwise)
Number of Shares
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Held
September 30,
Purchased Sold 2006
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Agilent Technologies, Inc. ............ 142,400 942,400
Arbinet-thexchange, Inc. .............. 105,000 1,005,000
Arch Coal, Inc. ....................... 100,000 100,000
Cincinnati Bell Inc. .................. 100,000 400,000
Cirrus Logic, Inc. .................... 20,000 120,000
Hewitt Associates, Inc. ............... 300,000 400,000
Kerr-McGee Corporation ................ 400,000 --
Neoware, Inc. ......................... 650,000 1,000,000
PolyOne Corporation ................... 11,000 609,000
Schering-Plough Corporation ........... 450,000 --
Solectron Corporation ................. 200,000 1,800,000
Sonus Networks, Inc. .................. 500,000 2,500,000
TransMontaigne Inc. ................... 1,100,000 --
The TriZetto Group, Inc. .............. 124,600 1,150,000
Tronox Inc. ........................... 40,328 --
Tyco International Ltd. ............... 200,000 400,000
Unisys Corporation .................... 900,000 --
Vical Inc. ............................ 5,100 134,900
TEN LARGEST INVESTMENTS
September 30, 2006
------------------ % of Year First
Cost Value Net Assets Acquired
---- ----- ---------- ----------
(millions)
The Plymouth Rock Company, Inc. .............. $ 2.2 $119.0 20.2% 1982
Convergys Corporation ........................ 24.1 32.0 5.4 1998
Brady Corporation ............................ 3.5 32.0 5.4 1984
The Bank of New York Company, Inc. ........... 15.5 30.9 5.2 1993
Agilent Technologies, Inc. ................... 23.9 30.8 5.2 2005
Murphy Oil Corporation ....................... 3.7 28.5 4.8 1974
Capital One Financial Corporation ............ 1.4 23.6 4.0 1994
Intel Corporation ............................ 0.4 20.2 3.4 1986
Dover Corporation ............................ 13.0 19.0 3.2 2003
Roper Industries, Inc. ....................... 9.0 18.3 3.1 2003
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BOARD OF DIRECTORS
C. Carter Walker, Jr., Chairman
Simms C. Browning
Donald G. Calder
Jay R. Inglis
Dudley D. Johnson
Wilmot H. Kidd
OFFICERS
Wilmot H. Kidd, President
Charles N. Edgerton, Vice President and Treasurer
Marlene A. Krumholz, Secretary
OFFICE
630 Fifth Avenue
Suite 820
New York, NY 10111
212-698-2020
866-593-2507 (toll free)
www.centralsecurities.com
CUSTODIAN
UMB Bank, N.A.
Kansas City, MO
TRANSFER AGENT AND REGISTRAR
Computershare Trust Company, N.A.
P. O. Box 43069, Providence, RI 02940-3069
800-756-8200
www.computershare.com
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP, New York
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