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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 2006
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To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 2006 and other pertinent
information prepared by management without audit by independent auditors are
submitted herewith.
Comparative net assets are as follows:
Mar. 31, 2006 Dec. 31, 2005 Mar. 31, 2005
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Net assets ................................. $596,362,807 $573,979,905 $551,011,773
Net assets per share of Common Stock ....... $ 29.43 $ 27.65 $ 27.53
Shares of Common Stock outstanding ... 20,263,959 20,762,159 20,015,909
Comparative operating results are as follows:
Three months ended March 31,
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2006 2005
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Net investment income ............................................... $ 4,863,123 $ 3,581,348
Per share of Common Stock ........................................ .24* .18*
Net realized gain on sale of investments ............................ 17,638,863 27,764,663
Increase (decrease) in net unrealized appreciation of investments ... 12,162,691 (9,632,338)
Increase in net assets resulting from operations .................... 34,664,677 21,713,673
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* Per-share data are based on the average number of Common shares
outstanding during the three-month period.
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The annual meeting of stockholders of the Corporation was held on March 8,
2006 with 89% 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 2006 was ratified. Detailed information will be
published in the June 30, 2006 Semi-Annual Report.
In the quarter ended March 31, 2006 the Corporation repurchased 498,200
shares of its Common Stock at an average price per share of $24.65. 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 the American Stock Exchange or in
private transactions directly with stockholders.
Stockholders' inquiries are welcome.
CENTRAL SECURITIES CORPORATION
WILMOT H. KIDD, President
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PRINCIPAL PORTFOLIO CHANGES
January 1 to March 31, 2006
(Common Stock unless specified otherwise)
Number of Shares
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Held
March 31,
Purchased Sold 2006
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Accenture Ltd. .......................................... 400,000 --
Arbinet-thexchange, Inc. ................................ 140,100 359,900
The Bank of New York Company, Inc. ...................... 375,000 875,000
Brady Corporation Class A ............................... 10,000 920,000
Cirrus Logic, Inc. ...................................... 100,000 100,000
Flextronics International Ltd. .......................... 1,000,000 --
McMoRan Exploration Co. ................................. 180,000 500,000
PolyOne Corporation ..................................... 180,000 970,000
TransMontaigne Inc. ..................................... 700,000 1,225,000
Transport Corporation of America, Inc. Class B .......... 531,557 --
Tronox Inc. Class B ..................................... 40,328(a) 40,328
Virage Logic Corporation ................................ 96,400 --
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(a) Received in a distribution from Kerr-McGee Corporation.
TEN LARGEST INVESTMENTS
March 31, 2006
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% of Year First
Cost Value Net Assets Acquired
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(millions)
The Plymouth Rock Company, Inc. ........... $ 2.2 $108.5 18.2% 1982
Brady Corporation Class A ................. 3.5 34.5 5.8 1984
The Bank of New York Company, Inc. ........ 15.5 31.5 5.3 1993
Murphy Oil Corporation .................... 3.7 29.9 5.0 1974
Convergys Corporation ..................... 24.1 28.2 4.7 1998
Agilent Technologies, Inc. ................ 18.1 28.2 4.7 2005
Capital One Financial Corporation ......... 1.4 24.2 4.1 1994
Roper Industries, Inc. .................... 9.0 19.9 3.3 2003
Dover Corporation ......................... 13.0 19.4 3.3 2003
Kerr-McGee Corporation .................... 11.7 19.1 3.2 2001
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BOARD OF DIRECTORS
C. Carter Walker, Jr., Chairman
Simms C. Browning
Donald G. Calder
Jay R. Inglis
Dudley D. Johnson
Wilmot H. Kidd
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
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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