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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF SEPTEMBER 30, 2004
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To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended September 30, 2004 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, 2004 June 30, 2004 Dec. 31, 2003
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Net assets ................................ $507,270,691 $526,780,137 $478,959,218
Net assets per share of Common Stock ...... 25.93 26.87 24.32
Shares of Common Stock outstanding .. 19,562,777 19,606,477 19,692,777
Comparative operating results are as follows:
Nine months ended September 30,
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2004 2003
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Net investment income .................................... $ 2,139,984 $ 1,737,273
Per share of Common Stock .......................... .11* .09*
Net realized gain on sale of investments ................. 21,786,174 20,595,780
Increase in net unrealized appreciation of investments ... 10,135,449 59,380,203
Increase in net assets resulting from operations ......... 34,061,607 81,713,256
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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, 2004 the Corporation repurchased 43,700
shares of its Common Stock at an average price of $21.64. 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
630 Fifth Avenue
New York, NY 10111
October 20, 2004
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PRINCIPAL PORTFOLIO CHANGES
July 1 to September 30, 2004
(Common Stock unless specified otherwise)
Number of Shares
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Held
September 30,
Purchased Sold 2004
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Ceridian Corporation ........................ 190,000 400,000
Convergys Corporation ....................... 410,000 1,630,000
Fifth Third Bancorp ......................... 85,000 285,000
Impath Inc. ................................. 490,000 --
Ingram Micro Inc. ........................... 180,000 --
Laboratory Corporation of America Holdings .. 100,000 --
McMoRan Exploration Co. ..................... 267,000 267,000
Merck & Co., Inc. ........................... 50,000 150,000
Primus Guaranty, Ltd. ....................... 250,000 250,000
Roper Industries, Inc. ...................... 40,300 165,000
The TriZetto Group, Inc. .................... 137,000 1,137,000
Unocal Corporation .......................... 150,000 400,000
Wind River Systems, Inc. .................... 113,000 327,000
TEN LARGEST INVESTMENTS
September 30, 2004
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% of Year First
Cost Value Net Assets Acquired
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(millions)
The Plymouth Rock Company, Inc. ...... $ 2.2 $93.0 18.3% 1982
Capital One Financial Corporation .... 1.8 27.0 5.3 1994
Murphy Oil Corporation ............... 3.7 26.0 5.1 1974
Brady Corporation .................... 2.3 25.1 5.0 1984
Convergys Corporation ................ 27.4 21.9 4.3 1998
Intel Corporation .................... .4 19.7 3.9 1986
Unocal Corporation ................... 14.7 17.2 3.4 2004
Analog Devices, Inc. ................. .5 16.7 3.3 1987
Flextronics International Ltd. ....... 3.8 16.0 3.2 1996
Bank of New York Company, Inc. ....... 3.3 14.6 2.9 1993
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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.
Annapolis, MD
C. CARTER WALKER, JR.
Washington, CT
OFFICERS
WILMOT H. KIDD, President
CHARLES N. EDGERTON, Vice President and Treasurer
MARLENE A. KRUMHOLZ, Secretary
OFFICE
630 Fifth Avenue, New York, NY 10111
212-698-2020
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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