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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 2007
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To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 2007 and other pertinent
information prepared by management without audit by independent auditors are
submitted herewith.
Comparative net assets are as follows:
Mar. 31, 2007 Dec. 31, 2006 Mar. 31, 2006
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Net assets...................... $627,727,778 $617,167,026 $596,362,807
Net assets per share of
Common Stock.................. $ 30.56 $ 30.05 $ 29.43
Shares of Common Stock
outstanding................. 20,538,195 20,538,195 20,263,959
Comparative operating results are as follows:
Three months ended March 31,
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2007 2006
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Net investment income ....................... $ 5,698,854 $ 4,863,123
Per share of Common Stock ................. .28* .24*
Net realized gain on sale of
investments ............................... 6,985,140 17,638,863
Increase (decrease) in net
unrealized appreciation of investments .... (2,123,243) 12,162,691
Increase in net assets resulting
from operations ........................... 10,560,751 34,664,677
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* 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
14, 2007 with 95% 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 2007 was ratified. Detailed information will be
published in the June 30, 2007 Semi-Annual Report.
In the quarter ended March 31, 2007 the Corporation did not repurchase any
of its Common Stock. However, it 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 private transactions directly with stockholders.
It is a great pleasure to announce that Bill Sheeline, who joined Central
late last year, was elected a Vice President in March. Bill brings broad
business experience to Central, including prior affiliations with Fortune
Magazine and GEICO.
Stockholders' inquiries are welcome.
CENTRAL SECURITIES CORPORATION
WILMOT H. KIDD, President
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PRINCIPAL PORTFOLIO CHANGES
January 1 to March 31, 2007
(Common Stock unless specified otherwise)
(unaudited)
Number of Shares
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Held
March 31,
Purchased Sold 2007
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A.S.V., Inc. ............................ 200,000 200,000
Berry Petroleum Company ................. 175,000 375,000
Capital One Financial Corporation ....... 10,000 310,000
Ceridian Corporation .................... 400,200 --
Cirrus Logic, Inc. ...................... 120,000 --
Convergys Corporation ................... 150,000 1,400,000
The Dow Chemical Company ................ 100,000 --
GeoMet Inc. ............................. 331,000 701,000
Hewitt Associates Inc. .................. 200,000 200,000
IMS Health Inc. ......................... 120,000 200,000
McMoRan Exploration Co. ................. 34,800 555,000
PolyOne Corporation ..................... 50,000 75,000
SLM Corporation ......................... 100,000 100,000
The TriZetto Group, Inc. ................ 145,000 1,005,000
TEN LARGEST INVESTMENTS
(unaudited)
March 31, 2007
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Percent of Year First
Cost Value Net Assets Acquired
---- ----- ---------- --------
(millions)
The Plymouth Rock Company, Inc. ...... $ 2.2 $133.0 21.2% 1982
Convergys Corporation ................ 21.0 35.6 5.7 1998
The Bank of New York Company, Inc. ... 15.5 35.5 5.7 1993
Murphy Oil Corporation ............... 3.7 32.0 5.1 1974
Agilent Technologies, Inc. ........... 22.5 31.7 5.1 2005
Brady Corporation .................... 3.5 28.4 4.5 1984
Capital One Financial Corporation .... 2.9 23.4 3.7 1994
Roper Industries, Inc. ............... 9.0 22.5 3.6 2003
Sonus Networks Inc. .................. 9.7 20.2 3.2 2005
The TriZetto Group, Inc. ............. 6.3 20.1 3.2 2002
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BOARD OF DIRECTORS
Donald G. Calder, Chairman
Simms C. Browning
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
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