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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF SEPTEMBER 30, 2003
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To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended September 30, 2003 prepared by
management without audit by independent auditors and other pertinent information
are submitted herewith.
Comparative market values of net assets are as follows:
Sept. 30, 2003 June 30, 2003 Dec. 31, 2002
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Net assets........................................ $435,952,050 $421,972,928 $361,942,568
Net assets per share of Common Stock.............. 22.91 22.06 18.72
Shares of Common Stock outstanding.......... 19,031,684 19,124,984 19,337,284
Comparative operating results are as follows:
Nine months ended September 30,
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2003 2002
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Net investment income............................................... $ 1,737,273 $ 2,383,772
Per share of Common Stock..................................... .09* .13*
Net realized gain on sale of investments............................ 20,595,780 18,895,235
Increase (decrease) in net unrealized appreciation of investments... 59,380,203 (187,342,733)
Increase (decrease) in net assets resulting from operations......... 81,713,256 (166,063,726)
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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, 2003 the Corporation repurchased 93,300
shares of its Common Stock at an average price of $19.57. 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
375 Park Avenue
New York, NY 10152
October 14, 2003
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PRINCIPAL PORTFOLIO CHANGES
July 1 to September 30, 2003
(Common Stock unless specified otherwise)
Number of Shares
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Held
September 30,
Purchased Sold 2003
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Analog Devices, Inc.................................... 10,000 490,000
ArvinMeritor, Inc...................................... 60,000 700,000
Capital One Financial Corporation...................... 10,000 430,000
Erie Indemnity Company Class A......................... 10,000 10,000
Flextronics International Ltd.......................... 70,000 1,230,000
Intel Corporation...................................... 50,000 1,000,000
Marsh & McLennan Companies, Inc........................ 20,000 70,000
Medco Health Solutions, Inc............................ 12,060* 12,060
Peerless Systems Corporation........................... 200,000 --
Rohm and Haas Company.................................. 50,000 200,000
Schering-Plough Corporation............................ 50,000 450,000
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* Received in a distribution from Merck & Co., Inc.
TEN LARGEST INVESTMENTS
September 30, 2003
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% of Year First
Cost Value Net Assets Acquired
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(millions)
The Plymouth Rock Company, Inc............... $ 2.2 $51.9 11.9% 1982
Intel Corporation............................ .4 27.5 6.3 1986
Capital One Financial Corporation............ 2.1 24.5 5.6 1994
American Management Systems, Inc............. 22.2 20.8 4.8 1984
Analog Devices, Inc.......................... .6 18.6 4.3 1987
Murphy Oil Corporation....................... 3.1 17.6 4.0 1974
Flextronics International Ltd................ 3.9 17.5 4.0 1996
Brady Corporation............................ 2.4 16.5 3.8 1984
The Bank of New York Company, Inc............ 4.1 16.3 3.7 1993
Convergys Corporation........................ 16.7 16.1 3.7 1998
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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
375 Park Avenue, New York, NY 10152
212-688-3011
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, N.A.
P. O. Box 43069, Providence, RI 02940-3069
781-575-2754
www.equiserve.com
INDEPENDENT AUDITORS
KPMG LLP
757 Third Avenue, New York, NY 10017
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