================================================================================
--------------------------------------------------------------------------------
CENTRAL SECURITIES CORPORATION
----------
INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 2009
--------------------------------------------------------------------------------
================================================================================
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 2009 and other pertinent
information prepared by management without audit by independent auditors are
submitted herewith.
Comparative net assets are as follows:
Mar. 31, 2009 Dec. 31, 2008 Mar. 31, 2008
------------- ------------- -------------
Net assets........................................ $358,075,258 $397,353,061 $612,438,385
Net assets per share of Common Stock.............. $ 16.05 $ 17.79 $ 28.64
Shares of Common Stock outstanding.......... 22,303,213 22,331,813 21,385,882
Comparative operating results are as follows:
Three months ended March 31,
----------------------------
2009 2008
---- ----
Net investment income............................................. 3,320,455 4,008,845
Per share of Common Stock...................................... .15* .19*
Net realized gain (loss) on sale of investments................... (1,815,436) 10,718,059
Decrease in net unrealized appreciation of investments............ (40,470,721) (47,111,243)
Decrease in net assets resulting from operations.................. (38,965,702) (32,384,339)
----------
* Per-share data are based on the average number of Common shares
outstanding during the three-month period.
----------
The annual meeting of stockholders of the Corporation was held on March
11, 2009 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 2009 was ratified. Detailed information will be
published in the June 30, 2009 Semi-Annual Report.
In the quarter ended March 31, 2009 the Corporation repurchased 28,600
shares of its Common Stock at an average price per share of $10.91. 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 NYSE-Amex or in private
transactions directly with stockholders.
Stockholders' inquiries are welcome.
CENTRAL SECURITIES CORPORATION
WILMOT H. KIDD, President
[2]
PRINCIPAL PORTFOLIO CHANGES
January 1 to March 31, 2009
(Common Stock unless specified otherwise)
(unaudited)
Number of Shares
------------------------------------
Held
March 31,
Purchased Sold 2009
--------- ------- ---------
Agilent Technologies, Inc................. -- 22,400 920,000
Analog Devices, Inc....................... -- 20,000 370,000
Arbinet-thexchange, Inc................... -- 100,000 1,000,000
The Bank of New York Mellon Corporation... -- 125,475 700,000
Capital One Financial Corporation......... -- 250,000 --
Coherent, Inc............................. -- 20,000 830,000
Maxim Integrated Products, Inc............ -- 10,000 300,000
Murphy Oil Corporation.................... -- 13,300 350,000
Roper Industries, Inc..................... -- 50,000 250,000
RSC Holdings Inc.......................... -- 70,000 --
TEN LARGEST INVESTMENTS
March 31, 2009
(unaudited)
Cost Value Percent of Year First
(mil.) (mil.) Net Assets Acquired
------ ------ ---------- ----------
The Plymouth Rock Company, Inc............ $ 2.2 $112.0 31.3% 1982
The Bank of New York Mellon Corporation... 12.8 19.8 5.5 1993
Murphy Oil Corporation.................... 1.4 15.7 4.4 1974
Brady Corporation......................... 2.5 15.3 4.3 1984
Coherent, Inc............................. 22.9 14.3 4.0 2007
Agilent Technologies, Inc................. 21.9 14.1 3.9 2005
Convergys Corporation..................... 25.3 14.0 3.9 1998
Intel Corporation......................... 0.3 12.2 3.4 1986
Roper Industries, Inc..................... 5.0 10.6 3.0 2003
Dover Corporation......................... 13.0 10.6 2.9 2003
[3]
BOARD OF DIRECTORS
Simms C. Browning, Chairman
Donald G. Calder
Jay R. Inglis
Dudley D. Johnson
Wilmot H. Kidd
C. Carter Walker, Jr.
OFFICERS
Wilmot H. Kidd, President
Charles N. Edgerton, Vice President and Treasurer
William E. Sheeline, Vice President
Marlene A. Krumholz, Secretary
OFFICE
630 Fifth Avenue
New York, NY 10111
212-698-2020
866-593-2507 (toll-free)
www.centralsecurities.com
TRANSFER AGENT AND REGISTRAR
Computershare Trust Company, N.A.
P. O. Box 43069, Providence, RI 02940-3069
800-756-8200
www.computershare.com
CUSTODIAN
UMB Bank, N.A.
Kansas City, MO
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
New York, NY
[4]