CENTRAL SECURITIES CORPORATION
INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 2011
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 2011 and other pertinent information prepared by management without audit by independent auditors are submitted herewith.
Comparative net assets are as follows:
| Mar. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2010 | ||||||
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| Net assets | $ | 641,510,070 | $ | 593,524,167 | $ | 536,911,996 | ||
| Net assets per share of Common Stock | $ | 28.16 | $ | 26.06 | $ | 23.83 | ||
| Shares of Common Stock outstanding | 22,779,391 | 22,779,391 | 22,528,016 | |||||
Comparative operating results are as follows:
| Three months ended March 31, | |||||||
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| 2011 | 2010 | ||||||
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| Net investment income | $ | 4,218,417 | $ | 4,932,174 | |||
| Per share of Common Stock | .19 | * | .22 | * | |||
| Net realized gain on sale of investments | 7,187,103 | 576,187 | |||||
| Increase in net unrealized appreciation of investments | 36,580,383 | 28,388,445 | |||||
| Increase in net assets resulting from operations | 47,985,903 | 33,896,806 | |||||
| * |
Per-share data are based on the average number of Common shares outstanding during the three-month period. |
We are pleased to report that at the Corporation’s annual meeting on March 9, 2011, the stockholders elected six directors and ratified the selection of KPMG LLP as auditors of the Corporation for the year 2011. At the Board of Directors meeting on the same day, C. Carter Walker, Jr. was elected Lead Independent Director of the Board.
In the quarter ended March 31, 2011, the Corporation did not repurchase any shares 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 NYSE Amex or in private transactions directly with stockholders.
Stockholders’ inquiries are welcome.
| CENTRAL SECURITIES CORPORATION | |
| WILMOT H. KIDD, President |
630 Fifth Avenue
New York, NY 10111
April 13, 2011
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PRINCIPAL PORTFOLIO CHANGES
January 1 to March 31, 2011
(Common Stock unless specified otherwise)
(unaudited)
| Number of Shares | ||||||
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| Purchased | Sold | Held March 31, 2011 |
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| Agilent Technologies, Inc. | 140,000 | 780,000 | ||||
| China Mobile Ltd. ADR | 30,000 | — | ||||
| EnCana Corporation | 100,000 | — | ||||
| GeoMet, Inc. Series A Convertible Redeemable Preferred Stock | 6,570 | (a) | 216,823 | |||
| Heritage-Crystal Clean, Inc. | 13,712 | 413,712 | ||||
| Intel Corporation | 485,000 | 1,450,000 | ||||
| Maxim Integrated Products, Inc. | 126,989 | — | ||||
| Mindspeed Technologies, Inc. | 475,000 | 475,000 | ||||
| Motorola Mobility Holdings, Inc. | 62,500 | (b) | 62,500 | |||
| Motorola Solutions, Inc. | 200,000 | (b)(c) | 200,000 | |||
| NewStar Financial, Inc. | 16,100 | 278,900 | ||||
| Nexen Inc. | 200,000 | — | ||||
| Primus Telecommunications Group, Inc. | 145,425 | (d) | 145,425 | |||
| Roper Industries, Inc. | 20,000 | 180,000 | ||||
| Sonus Networks, Inc. | 230,000 | 3,000,000 | ||||
| Xerox Corporation | 200,000 | 1,190,000 | ||||
| (a) |
Received as a dividend. |
| (b) |
Received 62,500 shares of Motorola Mobility Holdings, Inc. and 71,428 shares of Motorola Solutions, Inc. in exchange for 500,000 shares of Motorola, Inc. |
| (c) |
Purchased 128,572 shares after the spin off as described in (b) above. |
| (d) |
Received in exchange for 250,000 shares of Arbinet Corporation. |
TEN LARGEST INVESTMENTS
March 31, 2011
(unaudited)
| Cost | Value | Percent of Net Assets |
Year First Acquired |
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| The Plymouth Rock Company, Inc. | $ | 2.2 | $ | 168.0 | 26.2 | % | 1982 | |||
| Coherent, Inc. | 22.0 | 46.5 | 7.3 | 2007 | ||||||
| Agilent Technologies, Inc. | 17.7 | 34.9 | 5.4 | 2005 | ||||||
| Intel Corporation | 15.3 | 29.3 | 4.6 | 1986 | ||||||
| Analog Devices, Inc. | 9.6 | 27.0 | 4.2 | 1987 | ||||||
| Brady Corporation | 2.3 | 26.8 | 4.2 | 1984 | ||||||
| Convergys Corporation | 24.8 | 24.4 | 3.8 | 1998 | ||||||
| CEVA, Inc. | 9.8 | 24.0 | 3.7 | 2009 | ||||||
| Murphy Oil Corporation | 1.0 | 20.6 | 3.2 | 1974 | ||||||
| The Bank of New York Mellon Corporation | 12.2 | 20.2 | 3.1 | 1993 | ||||||
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BOARD OF DIRECTORS
Wilmot H. Kidd, Chairman
C. Carter Walker, Jr., Lead Independent Director
Simms C. Browning
Donald G. Calder
David C. Colander
Jay R. Inglis
OFFICERS
Wilmot H. Kidd, President
Marlene A. Krumholz, Vice President and Secretary
Lawrence P. Vogel, Vice President and Treasurer
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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