N-30B-2 1 e26949_n30b2.txt FORM N-30B-2 ================================================================================ CENTRAL SECURITIES CORPORATION ---------- INTERIM REPORT TO STOCKHOLDERS AS OF MARCH 31, 2007 ================================================================================ To the Stockholders of CENTRAL SECURITIES CORPORATION: Financial data for the quarter ended March 31, 2007 and other pertinent information prepared by management without audit by independent auditors are submitted herewith. Comparative net assets are as follows: Mar. 31, 2007 Dec. 31, 2006 Mar. 31, 2006 ------------- ------------- ------------- Net assets...................... $627,727,778 $617,167,026 $596,362,807 Net assets per share of Common Stock.................. $ 30.56 $ 30.05 $ 29.43 Shares of Common Stock outstanding................. 20,538,195 20,538,195 20,263,959 Comparative operating results are as follows: Three months ended March 31, ---------------------------- 2007 2006 ---- ---- Net investment income ....................... $ 5,698,854 $ 4,863,123 Per share of Common Stock ................. .28* .24* Net realized gain on sale of investments ............................... 6,985,140 17,638,863 Increase (decrease) in net unrealized appreciation of investments .... (2,123,243) 12,162,691 Increase in net assets resulting from operations ........................... 10,560,751 34,664,677 ---------- * 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 14, 2007 with 95% 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 2007 was ratified. Detailed information will be published in the June 30, 2007 Semi-Annual Report. In the quarter ended March 31, 2007 the Corporation did not repurchase any 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 American Stock Exchange or in private transactions directly with stockholders. It is a great pleasure to announce that Bill Sheeline, who joined Central late last year, was elected a Vice President in March. Bill brings broad business experience to Central, including prior affiliations with Fortune Magazine and GEICO. Stockholders' inquiries are welcome. CENTRAL SECURITIES CORPORATION WILMOT H. KIDD, President [2] PRINCIPAL PORTFOLIO CHANGES January 1 to March 31, 2007 (Common Stock unless specified otherwise) (unaudited) Number of Shares -------------------------------------- Held March 31, Purchased Sold 2007 --------- ---- --------- A.S.V., Inc. ............................ 200,000 200,000 Berry Petroleum Company ................. 175,000 375,000 Capital One Financial Corporation ....... 10,000 310,000 Ceridian Corporation .................... 400,200 -- Cirrus Logic, Inc. ...................... 120,000 -- Convergys Corporation ................... 150,000 1,400,000 The Dow Chemical Company ................ 100,000 -- GeoMet Inc. ............................. 331,000 701,000 Hewitt Associates Inc. .................. 200,000 200,000 IMS Health Inc. ......................... 120,000 200,000 McMoRan Exploration Co. ................. 34,800 555,000 PolyOne Corporation ..................... 50,000 75,000 SLM Corporation ......................... 100,000 100,000 The TriZetto Group, Inc. ................ 145,000 1,005,000 TEN LARGEST INVESTMENTS (unaudited) March 31, 2007 ------------------------- Percent of Year First Cost Value Net Assets Acquired ---- ----- ---------- -------- (millions) The Plymouth Rock Company, Inc. ...... $ 2.2 $133.0 21.2% 1982 Convergys Corporation ................ 21.0 35.6 5.7 1998 The Bank of New York Company, Inc. ... 15.5 35.5 5.7 1993 Murphy Oil Corporation ............... 3.7 32.0 5.1 1974 Agilent Technologies, Inc. ........... 22.5 31.7 5.1 2005 Brady Corporation .................... 3.5 28.4 4.5 1984 Capital One Financial Corporation .... 2.9 23.4 3.7 1994 Roper Industries, Inc. ............... 9.0 22.5 3.6 2003 Sonus Networks Inc. .................. 9.7 20.2 3.2 2005 The TriZetto Group, Inc. ............. 6.3 20.1 3.2 2002 [3] BOARD OF DIRECTORS Donald G. Calder, Chairman Simms C. Browning Jay R. Inglis Dudley D. Johnson Wilmot H. Kidd C. Carter Walker, Jr. OFFICERS Wilmot H. Kidd, President Charles N. Edgerton, Vice President and Treasurer William E. Sheeline, Vice President 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 [4]