================================================================================
CENTRAL SECURITIES CORPORATION
----------
INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 2003
================================================================================
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 2003 and other pertinent
information prepared by management without audit by independent auditors are
submitted herewith.
Comparative net assets are as follows:
Mar. 31, 2003 Dec. 31, 2002 Mar. 31, 2002
------------- ------------- -------------
Net assets ........................................ $349,194,110 $361,942,568 $541,877,179
Net assets per share of Common Stock .............. 18.18 18.72 28.74
Shares of Common Stock outstanding .......... 19,207,784 19,337,284 18,854,499
Comparative operating results are as follows:
Three months ended March 31,
----------------------------
2003 2002
---- ----
Net investment income ............................................ $ 880,683 $ 963,277
Per share of Common Stock ..................................... .05* .05*
Net realized gain on sale of investments ......................... 5,410,861 18,139,858
Decrease in net unrealized appreciation of investments ........... (17,010,940) (15,578,590)
Increase (decrease) in net assets resulting from operations ...... (10,719,396) 3,524,545
----------
* Per-share data are based on the average number of Common shares
outstanding during the three-month period.
----------
The annual meeting of stockholders of the Corporation was held on March
12, 2003 with 94% 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 2003 was ratified. Detailed information will be
published in the June 30, 2003 Semi-Annual Report.
In the quarter ended March 31, 2003 the Corporation repurchased 129,500
shares of its Common Stock at an average price per share of $15.67. 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
[2]
PRINCIPAL PORTFOLIO CHANGES*
January 1 to March 31, 2003
(Common Stock unless specified otherwise)
Number of Shares
-------------------------------------
Held
March 31,
Purchased Sold 2003
--------- ---- ----
American International Group, Inc. ...... 100,000 100,000
Analog Devices, Inc. .................... 50,000 550,000
ArvinMeritor, Inc. ...................... 60,000 580,000
AT&T Wireless Services, Inc. ............ 200,000 --
Duke Energy Corporation ................. 10,000 110,000
HSBC Holdings plc ....................... 53,500(a) 53,500
Household International, Inc. ........... 200,000(b) --
Intel Corporation ....................... 10,000 1,110,000
Marsh & McLennan Companies, Inc. ........ 50,000 50,000
Murphy Oil Corporation .................. 120,000 300,000
PartnerRe Ltd. .......................... 50,000 --
ProBusiness Services, Inc. .............. 240,000 --
Schering-Plough Corporation ............. 140,000 300,000
The TriZetto Group, Inc. ................ 470,000 900,000
----------
* Excludes "Other Investments".
(a) Received in exchange for 100,000 shares of Household International, Inc.
(b) 100,000 shares exchanged for 53,500 shares of HSBC Holdings plc.
TEN LARGEST INVESTMENTS
March 31, 2003
-----------------------------------
% of Year First
Cost Value Net Assets Acquired
---- ----- ---------- --------
(millions)
The Plymouth Rock Company, Inc. ............... $ 2.2 $42.0 12.0% 1982
American Management Systems, Inc. ............. 22.2 19.6 5.6 1984
Intel Corporation ............................. .5 18.1 5.2 1986
Analog Devices, Inc. .......................... .7 15.1 4.3 1990
Capital One Financial Corporation ............. 2.5 15.0 4.3 1994
Brady Corporation ............................. 2.4 14.7 4.2 1984
Murphy Oil Corporation ........................ 3.1 13.3 3.8 1974
SunGard Data Systems, Inc. .................... 6.7 12.6 3.6 1999
The Bank of New York Company, Inc. ............ 4.4 12.3 3.5 1993
Flextronics International, Ltd. ............... 4.4 11.8 3.4 1996
[3]
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.
New York, NY
C. CARTER WALKER, JR.
Washington, CT
OFFICERS
WILMOT H. KIDD, President
CHARLES N. EDGERTON, Vice President and Treasurer
MARLENE A. KRUMHOLZ, Secretary
OFFICE
375 Park Avenue, New York, NY 10152
212-688-3011
www.centralsecurities.com
CUSTODIAN
UMB Bank, N.A.
P.O. Box 419226, Kansas City, MO 64141-6226
TRANSFER AGENT AND REGISTRAR
EquiServe Trust Company
P. O. Box 43069, Providence, RI 02940-3069
781-575-2724
www.equiserve.com
INDEPENDENT AUDITORS
KPMG LLP
757 Third Avenue, New York, NY 10017
[4]