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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF SEPTEMBER 30, 2009
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To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended September 30, 2009 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, 2009 June 30, 2009 Dec. 31, 2008
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Net assets........................................ $476,599,083 $429,428,422 $397,353,061
Net assets per share of Common Stock.............. 21.39 19.27 17.79
Shares of Common Stock outstanding.......... 22,276,713 22,282,413 22,331,813
Comparative operating results are as follows:
Nine months ended September 30,
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2009 2008
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Net investment income............................................ $ 6,624,597 $ 5,421,102
Per share of Common Stock.................................. .30* .25*
Net realized gain on sale of investments......................... 6,408,852 43,796,489
Increase (decrease) in net unrealized appreciation
of investments ................................................ 69,124,343 (111,179,937)
Increase (decrease) in net assets resulting from operations...... 82,157,792 (61,962,346)
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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, 2009 the Corporation repurchased 5,700
shares of its Common Stock at an average price of $16.04. 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 NYSE Amex, or in private transactions directly with
stockholders.
On another note, I wish to report that after serving for over twenty-five
years, Dudley Johnson has stepped down from the Board in order to focus on his
company and his foundation. Central has benefited greatly from Dudley's clear
thinking, financial insight and business acumen. We will miss his thoughtful
advice. He remains a valued friend.
Stockholders' inquiries are welcome.
CENTRAL SECURITIES CORPORATION
WILMOT H. KIDD, President
630 Fifth Avenue
New York, NY 10111
October 14, 2009
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PRINCIPAL PORTFOLIO CHANGES*
July 1 to September 30, 2009
(Common Stock unless specified otherwise)
(unaudited)
Number of Shares
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Held
September 30,
Purchased Sold 2009
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Abbott Laboratories................ 10,000 120,000
Brady Corporation.................. 100,000 770,000
Coherent, Inc...................... 1,000 831,000
Intel Corporation.................. 90,000 710,000
Murphy Oil Corporation............. 45,700 300,000
Nexen Inc.......................... 40,000 200,000
Walgreen Co........................ 30,000 230,000
Xerox Corporation.................. 30,000 960,000
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* Excludes "Miscellaneous -- Other Investments."
TEN LARGEST INVESTMENTS
(unaudited)
September 30, 2009
------------------ % of Year First
Cost Value Net Assets Acquired
---- ----- ---------- --------
(millions)
The Plymouth Rock Company, Inc............... $ 2.2 $140.0 29.4% 1982
Agilent Technologies, Inc.................... 21.9 25.6 5.4 2005
Brady Corporation............................ 2.3 22.1 4.6 1984
The Bank of New York Mellon Corporation...... 12.2 19.6 4.1 1993
Coherent, Inc................................ 22.9 19.4 4.1 2007
Murphy Oil Corporation....................... 1.1 17.3 3.6 1974
Convergys Corporation........................ 24.8 16.9 3.5 1998
Dover Corporation............................ 13.0 15.5 3.3 2003
Intel Corporation............................ 0.3 13.9 2.9 1986
Devon Energy Corporation..................... 14.9 13.5 2.8 2007
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BOARD OF DIRECTORS
Simms C. Browning, Chairman
Donald G. Calder
David C. Colander
Jay R. Inglis
Wilmot H. Kidd
C. Carter Walker, Jr.
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
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
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