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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF SEPTEMBER 30, 2008
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To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended September 30, 2008 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, 2008 June 30, 2008 Dec. 31, 2007
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Net assets........................................ $574,601,495 $638,415,329 $644,822,724
Net assets per share of Common Stock.............. 27.08 29.86 30.15
Shares of Common Stock outstanding.......... 21,219,382 21,376,782 21,385,882
Comparative operating results are as follows:
Nine months ended September 30,
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2008 2007
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Net investment income............................................... $ 5,421,102 $ 7,704,867
Per share of Common Stock..................................... .25* .38*
Net realized gain on sale of investments............................ 43,796,489 37,419,803
Increase (decrease) in net unrealized appreciation of investments... (111,179,937) 13,242,876
Increase (decrease) in net assets resulting from operations......... (61,962,346) 58,367,546
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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, 2008 the Corporation repurchased
157,400 shares of its Common Stock at an average price of $23.84. 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 Alternext, the successor to 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 15, 2008
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PRINCIPAL PORTFOLIO CHANGES
July 1 to September 30, 2008
(Common Stock unless specified otherwise)
(unaudited)
Number of Shares
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Held
September 30,
Purchased Sold 2008
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Abbott Laboratories..................... 10,000 100,000
American International Group, Inc....... 30,000 230,000 --
Analog Devices, Inc..................... 40,000 390,000
Brady Corporation....................... 5,600 870,000
Capital One Financial Corporation....... 90,000 250,000
Intel Corporation....................... 90,400 809,600
Maxim Integrated Products, Inc.......... 310,000 310,000
McMoRan Exploration Corporation......... 20,000 670,000
Murphy Oil Corporation.................. 36,700 363,300
Precision Castparts Corporation......... 8,900 100,000
Rohm and Haas Company................... 140,000(a) --
Roper Industries, Inc................... 50,000 300,000
RSC Holdings Inc........................ 70,000 70,000
Sonus Networks, Inc..................... 230,000 3,230,000
The TriZetto Group, Inc................. 240,000(a) --
White Mountains Insurance Group, Ltd.... 2,000 --
Xerox Corporation....................... 30,000 930,000
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(a) Merger.
TEN LARGEST INVESTMENTS
(unaudited)
September 30, 2008
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% of Year First
Cost Value Net Assets Acquired
---- ----- ---------- --------
(millions)
The Plymouth Rock Company, Inc............... $ 2.2 $140.0 24.4% 1982
Brady Corporation............................ 2.5 30.7 5.3 1984
Coherent, Inc................................ 23.6 30.2 5.3 2007
Agilent Technologies, Inc.................... 22.5 28.0 4.9 2005
The Bank of New York Mellon Corporation...... 15.5 26.9 4.7 1993
Convergys Corporation........................ 25.3 25.6 4.5 1998
Murphy Oil Corporation....................... 1.5 23.3 4.1 1974
Devon Energy Corporation..................... 14.9 18.2 3.2 2007
Roper Industries, Inc........................ 6.4 17.1 3.0 2003
Dover Corporation............................ 13.0 16.2 2.8 2003
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BOARD OF DIRECTORS
Dudley D. Johnson, Chairman
Simms C. Browning
Donald G. Calder
Jay R. Inglis
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
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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