<DOCUMENT>
<TYPE>N-CSR
<SEQUENCE>1
<FILENAME>ncsr-s035.txt
<DESCRIPTION>SEMI ANNUAL REPORT
<TEXT>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-2192
THE DREYFUS PREMIER THIRD CENTURY FUND, INC.
(Exact name of Registrant as specified in charter)
c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices) (Zip code)
Mark N. Jacobs, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 922-6000
Date of fiscal year end: 5/31
Date of reporting period: 11/30/03
<PAGE>
-2-
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
The Dreyfus Premier
Third Century
Fund, Inc.
SEMIANNUAL REPORT November 30, 2003
The views expressed in this report reflect those of the portfolio manager only
through the end of the period covered and do not necessarily represent the views
of Dreyfus or any other person in the Dreyfus organization. Any such views are
subject to change at any time based upon market or other conditions and Dreyfus
disclaims any responsibility to update such views. These views may not be relied
on as investment advice and, because investment decisions for a Dreyfus fund are
based on numerous factors, may not be relied on as an indication of trading
intent on behalf of any Dreyfus fund.
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the Chairman
3 Discussion of Fund Performance
6 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
13 Financial Highlights
19 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
The Dreyfus Premier
Third Century Fund, Inc.
LETTER FROM THE CHAIRMAN
Dear Shareholder:
This semiannual report for The Dreyfus Premier Third Century Fund, Inc. covers
the six-month period from June 1, 2003, through November 30, 2003. Inside, you'
ll find valuable information about how the fund was managed during the reporting
period, including a discussion with the fund's portfolio managers, L. Emerson
Tuttle and Paul Hilton.
Recent reports of marked improvement in the growth of U.S. Gross Domestic
Product suggest to us that the economy has started to turn the corner. Tax cuts
and low mortgage rates have put cash in consumers' pockets, and corporations
have started to increase spending. As a result, stocks have rallied, posting
gains in virtually every market sector and capitalization range.
Based on recent data, we are cautiously optimistic about the current economic
environment. As always, we urge you to speak regularly with your financial
advisor, who may be in the best position to suggest the Dreyfus funds designed
to meet your current needs, future goals and attitudes toward risk.
Thank you for your continued confidence and support.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
Chairman and Chief Executive Officer
The Dreyfus Corporation
December 15, 2003
DISCUSSION OF FUND PERFORMANCE
L. Emerson Tuttle and Paul Hilton, Portfolio Managers
How did The Dreyfus Premier Third Century Fund, Inc. perform relative to its
benchmark?
For the six-month period ended November 30, 2003, the fund produced total
returns of 11.70% for Class A shares, 11.13% for Class B shares, 11.13% for
Class C shares, 11.82% for Class R shares, 11.51% for Class T shares and 11.74%
for Class Z shares.(1) In comparison, the fund's benchmark, the Standard & Poor'
s 500 Composite Stock Price Index ("S&P 500 Index"), produced a total return of
10.80% for the same period.(2)
We attribute the market's performance during the reporting period to an
improving economy and a rallying stock market. The fund produced higher returns
than its benchmark, primarily due to the success of our sector allocation
strategy, including an emphasis on consumer discretionary stocks, and our stock
selection strategy, especially within the health care group.
What is the fund's investment approach?
The fund seeks to provide capital growth, with current income as a secondary
objective. The fund looks for growth-oriented companies that generally exhibit
three characteristics: improving profitability measurements, a pattern of
consistent earnings and reasonable prices.
To pursue these goals, the fund invests primarily in the common stocks of
companies that, in the opinion of the fund's management, meet traditional
investment standards while simultaneously conducting their businesses in a
manner that contributes to the enhancement of the quality of life in America
What other factors influenced the fund's performance?
By the time the reporting period began, the stock market had already begun to
rally after a three-year bear market. The quick end to major combat in Iraq
lifted a veil of uncertainty from the U.S. economy, and investors began to look
forward to higher corporate earnings. As a
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
result, we began to see a shift in investor sentiment away from lower-quality,
lower-priced stocks with generally modest earnings toward higher-quality, more
fully valued stocks with higher rates of earnings growth. This change in market
leadership helped drive the fund' s returns during the reporting period
The fund' s performance also benefited from its relatively heavy exposure to
consumer discretionary stocks. For some time now, we have maintained a "barbell"
approach toward retailers, favoring luxury goods providers such as Tiffany & Co.
and Coach on one end, discount retailers such as TJX Cos. at the other end and
generally avoiding the middle tier of retailers. High-end consumers continued to
spend during the economic slowdown, and we saw a steady increase in sales from
discount retailers when the economy began to recover.
The fund also received relatively strong contributions from its holdings of
health care equipment companies, medical device manufacturers and health care
providers. While the health care group posted only modestly positive returns
overall, weakness was concentrated primarily among large pharmaceutical
companies, which were hurt by competition from generic drugs and the possibility
of a more restrictive regulatory environment. Since the fund held relatively few
pharmaceutical stocks, it successfully avoided the brunt of the industry's
weakness.
On the other hand, the fund's performance might have been stronger had it had
greater exposure to large banks and brokerage firms within the financial
services area. In hindsight, we did not anticipate the speed at which these
companies' earnings would recover as the stock market rallied.
What is the fund's current strategy?
As of the end of the reporting period, we have modestly trimmed the fund's
exposure to telecommunications, energy and utilities stocks, choosing instead to
deploy more of the fund's assets to the technology and consumer discretionary
sectors, where we currently believe earnings growth rates have the potential to
rise. In our view, this strategy should help position the fund to benefit from
stronger economic growth.
Can you highlight some of the fund's socially responsible investing activities?
We' d like to alert our shareholders about a pressing environmental issue:
electronic waste. As computers have become newer, quicker and more efficient, it
has rendered older equipment obsolete. These products often contain hazardous
and toxic materials that pose environmental risks if they are sent to landfills
or are incinerated. For example, computer monitors use cathode ray tubes (CRTs),
which contain significant amounts of lead, and most printed circuit boards have
small amounts of chromium, lead solder, nickel and zinc.
The National Recycling Coalition (NRC) offers several tips to consumers for
recycling these products. Consider donating unused computer equipment to
nonprofit and charitable organizations. If your equipment is broken or too old
to be reused, you can send it to one of several companies that specialize in
electronics recycling. Your local community may even offer a special program to
take back electronic waste--just check the directory on the NRC website listed
below. Finally, your computer manufacturer may provide a recycling option on
their web site, charging a nominal fee for transport. We have been in dialogue
with management at Dell Computers and International Business Machines, both
holdings in the fund, to encourage them to track recycling and set goals for
improvement. Dell Computers, in particular, has demonstrated a serious
commitment to improving recycling rates.
For more information on computer recycling, please visit the NRC's website at
http://www.nrc-recycle.org/resources/electronics/managing.htm.
December 15, 2003
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN THE
CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGES IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD
THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD & POOR'S 500 COMPOSITE
STOCK PRICE INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF U.S. STOCK MARKET
PERFORMANCE.
The Fund
November 30, 2003 (Unaudited)
STATEMENT OF INVESTMENTS
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
COMMON STOCKS--98.2% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--5.6%
<S> <C> <C>
Microsoft 1,060,000 27,242,000
Symantec 256,000 (a) 8,404,480
35,646,480
CONSUMER DISCRETIONARY--15.3%
Bed Bath & Beyond 135,000 (a) 5,702,400
Coach 263,000 (a) 10,477,920
Comcast, Cl. A (Special) 243,000 (a) 7,326,450
Home Depot 219,000 8,050,440
Staples 251,000 (a) 6,814,650
Starwood Hotels & Resorts Worldwide 215,500 7,428,285
TJX Cos. 515,000 11,633,850
Target 313,000 12,119,360
Tiffany & Co. 295,000 13,378,250
Viacom, Cl. B 232,000 9,122,240
Walt Disney 222,000 5,125,980
97,179,825
CONSUMER STAPLES--6.4%
Anheuser-Busch Cos. 116,000 6,011,120
CVS 305,000 11,425,300
PepsiCo 280,000 13,473,600
Procter & Gamble 100,000 9,624,000
40,534,020
ENERGY--2.1%
Anadarko Petroleum 150,500 6,761,965
Royal Dutch Petroleum
(New York Shares), ADR 149,000 6,690,100
13,452,065
FINANCIAL--12.6%
ACE 233,000 8,492,850
American Express 354,500 16,204,195
American International Group 151,500 8,779,425
Axis Capital Holdings Ltd. 34,550 986,403
Citigroup 427,500 20,109,600
Goldman Sachs Group 83,000 7,974,640
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL (CONTINUED)
M&T Bank 38,500 3,613,995
Radian Group 148,000 7,303,800
U.S. Bancorp 235,000 6,511,850
79,976,758
HEALTH CARE--23.2%
Alcon 171,500 9,976,155
Amgen 196,500 (a) 11,300,715
Boston Scientific 410,000 (a) 14,714,900
Celgene 166,000 (a) 7,591,180
Forest Laboratories 296,000 (a) 16,173,440
Johnson & Johnson 357,000 17,596,530
Medtronic 313,000 14,147,600
Pfizer 853,500 28,634,925
Stryker 50,000 4,050,000
Varian Medical Systems 113,500 (a) 7,832,635
WellPoint Health Networks 111,000 (a) 10,377,390
Zimmer Holdings 77,000 (a) 5,075,840
147,471,310
INDUSTRIAL--9.0%
Avery Dennison 149,000 8,206,920
Danaher 170,000 14,144,000
Dover 272,000 10,442,080
Hewitt Associates, Cl. A 260,000 (a) 7,859,800
Tyco International 730,000 16,753,500
57,406,300
INFORMATION TECHNOLOGY--22.5%
Analog Devices 250,000 12,437,500
Applied Materials 276,000 (a) 6,706,800
BEA Systems 711,500 (a) 9,036,050
Cisco Systems 1,183,000 (a) 26,806,780
Cognizant Technology Solutions 140,000 (a) 6,421,800
Dell 549,000 (a) 18,940,500
EMC 524,000 (a) 7,199,760
Intel 733,000 24,504,190
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY (CONTINUED)
International Business Machines 97,000 8,782,380
National Semiconductor 145,000 (a) 6,484,400
Texas Instruments 132,500 (a) 3,943,200
UTstarcom 307,000 (a) 11,629,160
142,892,520
MATERIALS--1.0%
Praxair 89,500 6,424,310
TELECOMMUNICATION SERVICES--.5%
CenturyTel 107,500 3,515,250
TOTAL COMMON STOCKS
(cost $512,240,988) 624,498,838
------------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--1.8% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--.0%
Self Help Credit Union,
1.14%, 12/16/2003 100,000 100,000
U.S. TREASURY BILLS--1.8%
.90%, 12/4/2003 1,006,924 1,006,929
.87%, 12/11/2003 926,776 926,778
.89%, 12/18/2003 2,474,961 2,474,960
.91%, 12/26/2003 6,754,729 6,754,674
11,163,341
TOTAL SHORT-TERM INVESTMENTS
(cost $11,263,390) 11,263,341
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $523,504,378) 100.0% 635,762,179
CASH AND RECEIVABLES (NET) .0% 35,816
NET ASSETS 100.0% 635,797,995
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2003 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 523,504,378 635,762,179
Cash 287,126
Dividends and interest receivable 446,200
Receivable for shares of Common Stock subscribed 136,615
Prepaid expenses 41,558
636,673,678
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 507,237
Payable for shares of Common Stock redeemed 116,652
Accrued expenses 251,794
875,683
--------------------------------------------------------------------------------
NET ASSETS ($) 635,797,995
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 792,791,919
Accumulated investment (loss)--net (739,706)
Accumulated net realized gain (loss) on investments (268,512,019)
Accumulated net unrealized appreciation
(depreciation) on investments 112,257,801
--------------------------------------------------------------------------------
NET ASSETS ($) 635,797,995
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T Class Z
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Assets ($) 15,815,242 18,411,637 3,868,029 27,257,436 632,195 569,813,456
Shares Outstanding 2,070,487 2,491,966 523,211 3,514,498 84,715 73,874,028
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 7.64 7.39 7.39 7.76 7.46 7.71
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Six Months Ended November 30, 2003 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $19,814 foreign taxes withheld at source) 2,720,346
Interest 59,187
TOTAL INCOME 2,779,533
EXPENSES:
Investment advisory fee--Note 3(a) 2,301,079
Shareholder servicing costs--Note 3(c) 1,019,258
Distribution fees--Note 3(b) 80,808
Professional fees 35,333
Prospectus and shareholders' reports 26,193
Registration fees 23,076
Custodian fees--Note 3(c) 19,424
Directors' fees and expenses--Note 3(d) 9,025
Loan commitment fees--Note 2 3,771
Miscellaneous 1,272
TOTAL EXPENSES 3,519,239
INVESTMENT (LOSS)--NET (739,706)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 2,640,362
Net unrealized appreciation (depreciation) on investments 65,761,186
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 68,401,548
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 67,661,842
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
November 30, 2003 Year Ended
(Unaudited) May 31, 2003
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss)--net (739,706) (284,486)
Net realized gain (loss) on investments 2,640,362 (97,547,448)
Net unrealized appreciation
(depreciation) on investments 65,761,186 (25,677,078)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 67,661,842 (123,509,012)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 2,068,824 4,266,131
Class B shares 735,055 1,440,692
Class C shares 236,004 315,581
Class R shares 1,251,795 2,908,106
Class T shares 147,789 388,561
Class Z shares 35,388,867 93,114,149
Cost of shares redeemed:
Class A shares (2,013,847) (6,054,513)
Class B shares (1,061,641) (4,383,071)
Class C shares (463,076) (1,120,954)
Class R shares (2,487,160) (4,119,273)
Class T shares (142,598) (584,146)
Class Z shares (57,445,158) (167,888,732)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (23,785,146) (81,717,469)
TOTAL INCREASE (DECREASE) IN NET ASSETS 43,876,696 (205,226,481)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 591,921,299 797,147,780
END OF PERIOD 635,797,995 591,921,299
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
November 30, 2003 Year Ended
(Unaudited) May 31, 2003
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 286,790 659,370
Shares redeemed (278,570) (917,692)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 8,220 (258,322)
--------------------------------------------------------------------------------
CLASS B(A)
Shares sold 104,182 224,743
Shares redeemed (150,984) (691,047)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (46,802) (466,304)
--------------------------------------------------------------------------------
CLASS C
Shares sold 33,530 49,771
Shares redeemed (66,475) (178,620)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (32,945) (128,849)
--------------------------------------------------------------------------------
CLASS R
Shares sold 171,993 443,088
Shares redeemed (341,953) (630,834)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (169,960) (187,746)
--------------------------------------------------------------------------------
CLASS T
Shares sold 21,103 60,772
Shares redeemed (19,590) (90,160)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,513 (29,388)
--------------------------------------------------------------------------------
CLASS Z
Shares sold 4,931,764 14,155,737
Shares redeemed (7,977,559) (25,762,183)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (3,045,795) (11,606,446)
(A) DURING THE PERIOD ENDED NOVEMBER 30, 2003, 7,843 CLASS B SHARES
REPRESENTING $54,740 WERE AUTOMATICALLY CONVERTED TO 7,603 CLASS A SHARES AND
DURING THE PERIOD ENDED MAY 31, 2003, 9,727 CLASS B SHARES REPRESENTING $60,678
WERE AUTOMATICALLY CONVERTED TO 9,475 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (excluding portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
<CAPTION>
Six Months Ended Year Ended May 31,
November 30, 2003 ----------------------------------------------------
CLASS A SHARES (Unaudited) 2003 2002 2001 2000(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C>
beginning of period 6.84 8.05 10.40 13.95 13.34
Investment Operations:
Investment income (loss)--net(b) (.01) (.02) (.02) (.06) .20
Net realized and unrealized
gain (loss) on investments .81 (1.19) (2.26) (2.57) 1.76
Total from Investment Operations .80 (1.21) (2.28) (2.63) 1.96
Distributions:
Dividends from investment income--net -- -- -- (.08) --
Dividends from net realized
gain on investments -- -- (.07) (.84) (1.35)
Total Distributions -- -- (.07) (.92) (1.35)
Net asset value, end of period 7.64 6.84 8.05 10.40 13.95
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 11.70(d) (15.03) (21.95) (19.84) 14.90(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .66(d) 1.36 1.12 1.18 1.02(d)
Ratio of net investment income
(loss) to average net assets (.21)(d) (.23) (.22) (.51) 1.43(d
Portfolio Turnover Rate 26.63(d) 74.83 103.52 82.54 60.20
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 15,815 14,116 18,675 22,004 10,999
(A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended Year Ended May 31,
November 30, 2003 ----------------------------------------------------
CLASS B SHARES (Unaudited) 2003 2002 2001 2000(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C>
beginning of period 6.65 7.88 10.26 13.88 13.34
Investment Operations:
Investment income (loss)--net(b) (.04) (.07) (.09) (.16) .15
Net realized and unrealized
gain (loss) on investments .78 (1.16) (2.22) (2.56) 1.74
Total from Investment Operations .74 (1.23) (2.31) (2.72) 1.89
Distributions:
Dividends from investment income--net -- -- -- (.06) --
Dividends from net realized
gain on investments -- -- (.07) (.84) (1.35)
Total Distributions -- -- (.07) (.90) (1.35)
Net asset value, end of period 7.39 6.65 7.88 10.26 13.88
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 11.13(d) (15.61) (22.55) (20.58) 14.34(d
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.04(d) 2.15 1.93 1.95 1.55(d
Ratio of net investment income
(loss) to average net assets (.59)(d) (1.03) (1.05) (1.30) 1.07(d
Portfolio Turnover Rate 26.63(d) 74.83 103.52 82.54 60.20
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 18,412 16,873 23,671 31,152 20,812
(A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended May 31,
November 30, 2003 ----------------------------------------------------
CLASS C SHARES (Unaudited) 2003 2002 2001 2000(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C>
beginning of period 6.65 7.88 10.28 13.88 13.34
Investment Operations:
Investment income (loss)--net(b) (.04) (.06) (.10) (.16) .11
Net realized and unrealized
gain (loss) on investments .78 (1.17) (2.23) (2.54) 1.78
Total from Investment Operations .74 (1.23) (2.33) (2.70) 1.89
Distributions:
Dividends from investment income--net -- -- -- (.06) --
Dividends from net realized
gain on investments -- -- (.07) (.84) (1.35)
Total Distributions -- -- (.07) (.90) (1.35)
Net asset value, end of period 7.39 6.65 7.88 10.28 13.88
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 11.13(d) (15.61) (22.70) (20.48) 14.34(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.03(d) 2.13 1.98 1.92 1.54(d)
Ratio of net investment income (loss)
to average net assets (.58)(d) (1.02) (1.09) (1.28) .77(d)
Portfolio Turnover Rate 26.63(d) 74.83 103.52 82.54 60.20
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 3,868 3,698 5,399 7,037 5,234
(A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended Year Ended May 31,
November 30, 2003 ----------------------------------------------------
CLASS R SHARES (Unaudited) 2003 2002 2001 2000(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C>
beginning of period 6.94 8.12 10.46 14.00 13.34
Investment Operations:
Investment income (loss)--net(b) (.01) .02 .01 (.03) .26
Net realized and unrealized
gain (loss) on investments .83 (1.20) (2.28) (2.58) 1.75
Total from Investment Operations .82 (1.18) (2.27) (2.61) 2.01
Distributions:
Dividends from investment income--net -- -- -- (.09) --
Dividends from net realized
gain on investments -- -- (.07) (.84) (1.35)
Total Distributions -- -- (.07) (.93) (1.35)
Net asset value, end of period 7.76 6.94 8.12 10.46 14.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 11.82(c) (14.53) (21.73) (19.64) 15.30(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .53(c) .86 .81 .84 .75(c)
Ratio of net investment income
(loss) to average net assets (.07)(c) .25 .08 (.20) 1.69(c)
Portfolio Turnover Rate 26.63(c) 74.83 103.52 82.54 60.20
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 27,257 25,573 31,441 39,854 45,641
(A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended May 31,
November 30, 2003 ----------------------------------------------------
CLASS T SHARES (Unaudited) 2003 2002 2001 2000(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C>
beginning of period 6.69 7.90 10.29 13.85 13.34
Investment Operations:
Investment income (loss)--net(b) (.02) (.03) (.08) (.10) .20
Net realized and unrealized
gain (loss) on investments .79 (1.18) (2.24) (2.54) 1.66
Total from Investment Operations .77 (1.21) (2.32) (2.64) 1.86
Distributions:
Dividends from investment income--net -- -- -- (.08) --
Dividends from net realized
gain on investments -- -- (.07) (.84) (1.35)
Total Distributions -- -- (.07) (.92) (1.35)
Net asset value, end of period 7.46 6.69 7.90 10.29 13.85
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 11.51(d) (15.32) (22.58) (20.08) 14.14(d
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .78(d) 1.60 1.78 1.48 1.21(d
Ratio of net investment income
(loss) to average net assets (.32)(d) (.48) (.89) (.82) 1.40(d
Portfolio Turnover Rate 26.63(d) 74.83 103.52 82.54 60.20
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 632 557 890 998 456
(A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended Year Ended May 31,
November 30, 2003 -----------------------------------------------------------------------
CLASS Z SHARES (Unaudited) 2003 2002 2001 2000(a) 1999
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period 6.90 8.10 10.46 14.00 12.72 11.78
Investment Operations:
Investment income (loss)--net (.01)(b) (.00)(b,c) (.01)(b) (.04)(b) .08(b) (.01)
Net realized and unrealized
gain (loss) on investments .82 (1.20) (2.28) (2.58) 2.55 2.29
Total from Investment Operations .81 (1.20) (2.29) (2.62) 2.63 2.28
Distributions:
Dividends from investment
income--net -- -- -- (.08) -- --
Dividends from net realized
gain on investments -- -- (.07) (.84) (1.35) (1.34)
Total Distributions -- -- (.07) (.92) (1.35) (1.34)
Net asset value, end of period 7.71 6.90 8.10 10.46 14.00 12.72
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 11.74(d) (14.82) (21.92) (19.69) 20.91 20.30
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .56(d) 1.14 1.02 .95 .96 .96
Ratio of net investment income
(loss) to average net assets (.10)(d) (.02) (.14) (.32) .60 (.11)
Portfolio Turnover Rate 26.63(d) 74.83 103.52 82.54 60.20 75.88
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 569,813 531,104 717,072 1,034,078 1,310,890 1,130,190
(A) THE FUND CHANGED TO A SIX CLASS FUND ON AUGUST 31, 1999. THE EXISTING SHARES WERE REDESIGNATED CLASS Z SHARES.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
The Dreyfus Premier Third Century Fund, Inc. (the "fund") is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The fund's investment objective is to
provide capital growth, with current income as a secondary goal. The Dreyfus
Corporation (the "Manager") serves as the fund's investment adviser. The Manager
is a wholly-owned subsidiary of Mellon Bank, N.A. ("Mellon"), which is a
wholly-owned subsidiary of Mellon Financial Corporation.
Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of
Dreyfus, is the distributor of the fund's shares. The fund is authorized to
issue 100 million shares of $.001 par value Common Stock in each of the
following classes of shares: Class A, Class B, Class C, Class R and Class T and
200 million shares of $.001 par value Common Stock of Class Z. Class A, Class B,
Class C and Class T shares are sold primarily to retail investors through
financial intermediaries and bear a distribution fee and/or service fee. Class Z
shares are not available for new accounts and bear a service fee. Class A shares
and Class T shares are subject to a sales charge imposed at the time of
purchase. Class B shares are subject to a contingent deferred sales charge ("
CDSC") imposed on Class B share redemptions made within six years of purchase
and automatically convert to Class A shares after six years. Class C shares are
subject to a CDSC imposed on Class C shares redeemed within one year of purchase
and Class R shares are sold at net asset value per share only to institutional
investors. Other differences between the classes include the services offered to
and the expenses borne by each class and certain voting rights.
The fund' s financial statements are prepared in accordance with accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
(A) PORTFOLIO VALUATION: Investments in securities are valued at the last sales
price on the securities exchange on which such securities are primarily traded
or at the last sales price on the national securities market. The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
The fund prices securities traded on the NASDAQ stock market using the NASDAQ
official closing price. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is used
when no asked price is available. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Directors.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount and premium on investments, is recognized
on the accrual basis. Under the terms of the custody agreement, the fund
receives net earnings credits based on available cash balances left on deposit.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain, if any, are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the fund not to distribute such gain. Income and
capital gain distributions are determined in accordance with income tax
regulations, which may differ from accounting principles generally accepted in
the United States.
(D) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all federal income and excise taxes.
The fund has an unused capital loss carryover of $235,338,282 available for
federal income tax purposes to be applied against future net securities profits,
if any, realized subsequent to May 31, 2003. If not applied, $139,788,117 of the
carryover expires in fiscal 2010 and $95,550,165 expires in fiscal 2011.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $350 million
redemption credit facility (the "Facility" ) primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions. In
connection therewith, the fund has agreed to pay commitment fees on its pro rata
portion of the Facility. Interest is charged to the fund based on prevailing
market rates in effect at the time of borrowings. During the period ended
November 30, 2003, the fund did not borrow under the Facility.
NOTE 3--Investment Advisory Fee and Other Transactions With Affiliates:
(A) Pursuant to the Investment Advisory Agreement (" Agreement") with the
Manager, the investment advisory fee is computed at an annual rate of .75 of 1%
of the value of the fund's average daily net assets and is payable monthly.
Pursuant to the Agreement, if in any full fiscal year the aggregate expenses
allocable to Class Z, exclusive of taxes, brokerage fees, interest on
borrowings, commitment fees and extraordinary expenses, exceed 11_2% of the
value of the average daily net assets of Class Z, the fund may deduct from the
fees paid to the Manager, or the Manager will bear such excess expense. During
the period ended November 30, 2003, there was no expense reimbursement pursuant
to the Agreement.
During the period ended November 30, 2003, the Distributor retained $3,397 and
$49 from commissions earned on sales of the fund's Class A and Class T shares,
respectively, and $24,205 and $361 from contingent deferred sales charges on
redemptions of the fund's Class B and Class C shares, respectively.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the Distributor for
distributing their shares at the annual rates of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
November 30, 2003, Class B, Class C and Class T shares were charged $65,884,
$14,123 and $801, respectively, pursuant to the Plan.
(C) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the Distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding Class A, Class B, Class C and Class T
shares and providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended November 30, 2003,
Class A, Class B, Class C and Class T shares were charged $18,609, $21,961,
$4,708, and $801, respectively, pursuant to the Shareholder Services Plan.
Under the Shareholder Services Plan, Class Z shares reimburse the Distributor an
amount not to exceed an annual rate of .25 of 1% of the value of the average
daily net assets of Class Z for certain allocated expenses with respect to
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended November 30, 2003, Class Z shares were charged $282,079
pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended November 30, 2003, the fund was charged $160,759 pursuant to the transfer
agency agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended November 30, 2003, the fund was
charged $19,424 pursuant to the custody agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex. Annual retainer fees and attendance fees are allocated to each
fund based on net assets.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended November 30, 2003, amounted to
$158,880,557 and $177,842,987, respectively.
At November 30, 2003, accumulated net unrealized appreciation on investments was
$112,257,801, consisting of $119,152,263 gross unrealized appreciation and
$6,894,462 gross unrealized depreciation.
At November 30, 2003, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
NOTES
For More Information
The Dreyfus Premier
Third Century Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to:
The Dreyfus Premier Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
A description of the policies and procedures that the fund uses to determine how
to vote proxies relating to portfolio securities is available, without charge,
by calling the telephone number listed above, or by visiting the SEC's website
at http://www.sec.gov
Printed on recycled paper.
50% post-consumer
Process chlorine free.
Vegetable-based ink.
Printed in U.S.A.
(c) 2004 Dreyfus Service Corporation 035SA1103
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Registrant's principal executive and principal financial officers have
concluded, based on their evaluation of the Registrant's disclosure controls and
procedures as of a date within 90 days of the filing date of this report, that
the Registrant's disclosure controls and procedures are reasonably designed to
ensure that information required to be disclosed by the Registrant on Form N-CSR
is recorded, processed, summarized and reported within the required time periods
and that information required to be disclosed by the Registrant in the reports
that it files or submits on Form N-CSR is accumulated and communicated to the
Registrant's management, including its principal executive and principal
financial officers, as appropriate to allow timely decisions regarding required
disclosure.
(b) There were no changes to the Registrant's internal control over financial
reporting that occurred during the Registrant's most recently ended fiscal
half-year that has materially affected, or is reasonably likely to materially
affect, the Registrant's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial officers as
required by Rule 30a-2(a) under the Investment Company Act of 1940.
(b) Certification of principal executive and principal financial officers as
required by Rule 30a-2(b) under the Investment Company Act of 1940.
SIGNATURES
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.
THE DREYFUS PREMIER THIRD CENTURY FUND, INC.
By: /s/ Stephen E. Canter
Stephen E. Canter
President
Date: January 23, 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/ Stephen E. Canter
Stephen E. Canter
Chief Executive Officer
Date: January 23, 2004
By: /s/ James Windels
James Windels
Chief Financial Officer
Date: January 23, 2004
EXHIBIT INDEX
(a)(2) Certifications of principal executive and principal financial
officers as required by Rule 30a-2(a) under the Investment Company Act of
1940. (EX-99.CERT)
(b) Certification of principal executive and principal financial officers
as required by Rule 30a-2(b) under the Investment Company Act of 1940.
(EX-99.906CERT)
</TEXT>
</DOCUMENT>