N-Q 1 e19381nq.txt FORM N-Q 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