United States
Securities and Exchange Commission
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-00179
Central Securities Corporation
(Exact name of registrant as specified in charter)
630 Fifth Avenue, Suite 820
New York, N.Y. 10111
(Address of principal executive offices)
Registrant's telephone number including area code: 212-698-2020
Date of fiscal year end: December 31
Date of reporting period: September 30, 2004
Item 1. Schedule of Investments.
CENTRAL SECURITIES CORPORATION
Statement of Investments
September 30, 2004
(Unaudited)
PORTFOLIO SECURITIES 92.2%
STOCKS (COMMON UNLESS SPECIFIED OTHERWISE)
Prin.Amt.
or Shares Value
--------- -----
Banking and Finance 11.0%
500,000 The Bank of New York Company, Inc................... $ 14,585,000
365,000 Capital One Financial Corporation................... 26,973,500
285,000 Fifth Third Bancorp................................. 14,027,700
------------
55,586,200
------------
Chemicals 3.3%
1,372,400 PolyOne Corporation(a)............................... 10,320,448
150,000 Rohm and Haas Company............................... 6,445,500
------------
16,765,948
------------
Communications 0.7%
1,000,000 Cincinnati Bell Inc.(a)............................. 3,490,000
------------
Electronics 12.0%
430,000 Analog Devices, Inc................................. 16,675,400
1,210,000 Flextronics International Ltd.(a)................... 16,032,500
980,000 Intel Corporation................................... 19,658,800
200,000 Motorola, Inc....................................... 3,608,000
1,000,000 Solectron Corporation(a)............................ 4,950,000
------------
60,924,700
------------
Energy 13.1%
160,000 EnCana Corporation.................................. 7,408,000
220,000 Kerr-McGee Corporation.............................. 12,595,000
267,000 McMoRan Exploration Co.(a).......................... 3,404,250
300,000 Murphy Oil Corporation.............................. 26,031,000
400,000 Unocal Corporation.................................. 17,200,000
------------
66,638,250
------------
Health Care 3.6%
100,000 Abbott Laboratories................................. 4,236,000
150,000 Merck & Co. Inc. ................................... 4,950,000
450,000 Schering-Plough Corporation......................... 8,577,000
150,000 Vical Inc.(a)....................................... 720,150
------------
18,483,150
------------
Information Technology Services 14.9%
400,000 Accenture Ltd.(a)................................... 10,820,000
400,000 Ceridian Corporation(a)............................. 7,364,000
1,630,000 Convergys Corporation(a)............................ 21,890,900
570,000 SunGard Data Systems Inc. (a)....................... 13,548,900
1,137,000 TriZetto Group, Inc.(a)............................. 6,628,710
1,100,000 Unisys Corporation(a)............................... 11,352,000
327,000 Wind River Systems, Inc.(a)......................... 3,989,400
------------
75,593,910
------------
Prin. Amt.
or Shares Value
--------- -----
Insurance 21.9%
150,000 American International Group, Inc................. $ 10,198,500
100,000 Arch Capital Group Ltd.(a)........................ 3,894,000
10,000 Erie Indemnity Co. Class A........................ 510,200
250,000 Primus Guaranty, Ltd.(a).......................... 3,375,000
70,000 The Plymouth Rock Company, Inc.
Class A(b)(c)(d).............................. 93,030,000
-----------
111,007,700
-----------
Manufacturing 10.3%
600,000 ArvinMeritor, Inc................................. 11,250,000
515,000 Brady Corporation Class A......................... 25,116,550
170,000 Dover Corporation................................. 6,607,900
165,000 Roper Industries, Inc............................. 9,480,900
-----------
52,455,350
-----------
Retail Trade 0.5%
100,000 CarMax Inc.(a).................................... 2,155,000
Grumman Hill Investments, L.P.(a)(c)(d)........... 280,000
-----------
2,435,000
-----------
Transportation 0.8%
533,757 Transport Corporation of America, Inc.
Class B(a)(b)................................. 4,195,330
-----------
Total Portfolio Securities
(cost $228,051,948).................... 467,575,538
-----------
SHORT-TERM INVESTMENTS 9.4%
Commercial Paper 4.4%
$10,101,000 General Electric Capital Corp. 1.4022%
due 10/13/04.................................... $10,096,286
12,316,000 General Motors Acceptance Corp. 1.5528% - 1.7128%
due 10/20/04 - 11/3/04.......................... 12,298,815
-----------
22,395,101
U.S. Treasury Bills 5.0%
25,442,000 U.S. Treasury Bills 0.8859% - 1.5777%
due 10/7/04 - 12/23/04.......................... 25,389,745
-----------
Total Short-Term Investments
(cost $47,784,846)....................... 47,784,846
-----------
Total Investments ......................... 515,360,384
Cash, receivables and other assets
less liabilities (1.6%)................ (8,089,693)
-----------
Net Assets (100%).......................... $507,270,691
===========
(a) Non-dividend paying.
(b) Affiliate as defined in the Investment Company Act of 1940.
(c) Valued at estimated fair value.
(d) Restricted security. See footnote 2.
See accompanying notes to schedule of investments.
CENTRAL SECURITIES CORPORATION
NOTES TO STATEMENT OF INVESTMENTS
1. Security Valuation - Securities are valued at the last sale price or, if
unavailable, at the closing bid price. Corporate discount notes are valued at
amortized cost, which approximates value. Securities for which no ready market
exists are valued at estimated fair value by the Board of Directors.
As of September 30, 2004, the tax cost of investments was $272,432,544. Net
unrealized appreciation was $239,523,590 consisting of gross unrealized
appreciation and gross unrealized depreciation of $259,854,092 and $20,330,502,
respectively.
2. Restricted Securities - The Corporation from time to time invests in
securities the resale of which is restricted. On September 30, 2004, such
investments had an aggregate value of $93,310,000, which was equal to 18.4% of
the Corporation's net assets. Investments in restricted securities at September
30, 2004, including the acquisition dates and cost, were:
Company Shares Security Date Purchased Cost
------- ------ -------- -------------- ----
Grumman Hill
Investments, L.P. L.P. Interest 9/11/85 $18,190
The Plymouth Rock
Company, Inc. 70,000 Class A Common Stock 12/15/82 1,500,000
6/9/84 699,986
The Corporation does not have the right to demand registration of the restricted
securities.
Item 2. Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial
Officers have concluded that the Registrant's Disclosure Controls and Procedures
are effective based on their evaluation of the Disclosure Controls and
Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. During the last fiscal quarter,
there was no significant change in the Registrant's internal control over
financial reporting that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 3. Exhibits.
(a) Certifications.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
CENTRAL SECURITIES CORPORATION
By: /s/ Wilmot H. Kidd
------------------
President
Date: October 20, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Wilmot H. Kidd
------------------
President
Date: October 20, 2004
By: /s/ Charles N. Edgerton
--------------------------------
Vice President and Treasurer
Date: October 25, 2004