Corporacion Durango S/A/De C/V · 6-K · For 9/30/06

Filed On 3/21/07 7:34pm ET   ·   SEC File 1-13148   ·   Accession Number 925262-7-3

Report of a Foreign Private Issuer   ·   Form 6-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 6-K         Cd' Partially Fourth Quarter 2006 Results              9±    37K 

Document Table of Contents

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SECURITIES AND EXCHANGE COMMISSION                                              
Washington, D.C. 20549                

Form 6-K                  

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16                
OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934                  

For the month of March, 2007              
Durango Corporation                 
(f/k/a Grupo Industrial Durango, S.A. de C.V.)              
- -------------------------------------------------------------------           
(Translation of registrant's name into English)               

Torre Corporativa Durango, Potasio 150, Cuidad Industrial,                      
Durango, Durango, Mexico                    
- -------------------------------------------------------------------           
(Address of principal executive offices)                  

Indicate by check mark whether the registrant files or will file annual         
reports under cover Form 20-F or Form 40-F.  Form 20-F [x]  Form 40-F           

Indicate by check mark whether the registrant by furnishing the information     
contained in this Form is also thereby furnishing the information to the        
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act         
of 1934.  Yes    No [x]                                                         

If "Yes" is marked, indicate below the file number assigned to the registrant   
in connection with Rule 12g3-2(b): 82-_____________.                            

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CORPORACION DURANGO AND REPORTING GUARANTOR GROUP                                         10.8116
PARTIALLY CONSOLIDATED CONDENSED BALANCE SHEETS                                                  
AS OF DECEMBER 31, 2005 AND DECEMBER 31, 2006 (UNAUDITED)                                        
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS                                      
AS OF DECEMBER 31, 2006                                                                          
(Stated in thousands of Pesos and Dollars)                                                       
                                                                                                 
                                                                              US$ DLLS.          
                                                      December 31, Dec 31,     Dec 31,           
                                                         2005        2006        2006            

     ASSETS                                                                                      
CURRENT ASSETS:                                                                                  
  Cash and cash equivalents ........................$    521,474$    332,865      30,788         
  Accounts receivable, net .........................   1,125,391   1,316,213     121,741         
  Taxes recoverable and other assets ...............      67,986      46,629       4,313         
  Inventories, net .................................     821,287     868,845      80,362         
  Prepaid expenses .................................       4,964      15,494       1,433         
            Total current assets ...................   2,541,102   2,580,046     238,637         
LONG-TERM RELATED PARTIES ..........................     296,995      25,927       2,398         
PROPERTY, PLANT AND EQUIPMENT, net .................   7,470,254   7,240,533     669,700         
INVESTMENT IN SUBSIDIARIES .........................   3,655,246   3,939,992     364,423         
OTHER ASSETS, net ..................................     207,363     164,584      15,223         
            Total  assets ..........................$ 14,170,960$ 13,951,082   1,290,381         

     LIABILITIES AND STOCKHOLDERS' EQUITY                                                        
CURRENT LIABILITIES:                                                                             
  Bank loans and current portion of long-term debt .     195,850     171,682      15,879         
  Interest payable .................................       2,750       1,939         179         
  Trade accounts payable ...........................     409,024     441,812      40,865         
  Notes payable ....................................      28,155      44,857       4,149         
  Accrued liabilities ..............................     288,427     511,600      47,320         
  Employee profit-sharing ..........................         296       1,168         108         
            Total  current liabilities .............     924,502   1,173,058     108,500         
LONG-TERM DEBT .....................................   6,020,891   5,538,181     512,244         
LONG-TERM RELATED PARTIES ..........................     804,418     642,856      59,460         
LONG-TERM NOTES PAYABLE ............................      21,421     120,999      11,192         
DEFERRED TAXES......................................   1,213,591   1,205,208     111,474         
LIABILITY FOR EMPLOYEE BENEFITS.....................     313,123     299,972      27,745         
            Total long term liabilities ............   8,373,444   7,807,216     722,115         
            Total  liabilities .....................   9,297,946   8,980,274     830,615         
STOCKHOLDERS' EQUITY:                                                                            
  Majority interest ................................   4,844,456   4,948,590     457,711         
  Minority interest ................................      28,558      22,218       2,055         
            Total stockholders' equity .............   4,873,014   4,970,808     459,766         
            Total liabilities and stockholders' equi$ 14,170,960$ 13,951,082   1,290,381         

               Exchange rate: $ 10.8116                                                          

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CORPORACION DURANGO AND REPORTING GUARANTOR GROUP                                                   
PARTIALLY CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN FINANCIAL POSITION (UNAUDITED)             
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS                                         
AS OF DECEMBER 31, 2006                                                                             
(Stated in thousands of Pesos and Dollars)                                                          
                                                                                                    
                                                                                              *     
                                                                  Full Year   Acum. Dec   Acum. Dec 
                                                                     2005        2006      US$ 2006 

OPERATING ACTIVITIES:                                                                               
Net income (loss) ..............................................$    185,845$    148,810      13,764
    Add (deduct)- Charges (credits) to income which do                                              
       not require (generate) resources:                                                            
       Loss (Gain) in subsidiaries .............................     353,384    -326,366     -30,187
       Depreciation and amortization ...........................     270,506     254,827      23,570
       Loss (gain) on sale of property, plant and equipment ....      10,953           0           0
       Impairment of long-lived assets .........................           0     227,510      21,043
       Deferred income taxes ...................................    -200,234      28,915       2,674
       Other....................................................     -26,700      42,103       3,894
       Total items which do not require cash....................     407,909     226,989      20,995
  Net resources generated from income ..........................     593,754     375,799      34,759
    Changes in operating assets and liabilities:                                                    
    Decrease (Increase) in inventories .........................     -97,430     -47,558      -4,399
    Decrease (Increase) in current assets ......................      27,294      57,456       5,314
    Decrease (increase) in account receivables, net ............      -1,490    -237,451     -21,963
    (Decrease) increase in accounts payable and                                                     
      accrued liabilities ......................................    -163,752     272,724      25,225
  Resources generated by continued operating  ..................     358,376     420,970      38,937
  Assets and liabilities discontinued ..........................     -24,103           0           0
  Resources generated by operating activities ..................     334,273     420,970      38,937
FINANCING ACTIVITIES:                                                                               
       Increase (Decrease) in bank loans and others ............  -4,717,107    -358,599     -33,168
       Increase (Decrease) in capital ..........................     302,501           0           0
       Gain on shares sales ....................................   3,094,160           0           0
  Net resources generated from financing activities ............  -1,320,446    -358,599     -33,168
INVESTMENT ACTIVITIES:                                                                              
       Acquisition and sale of property, plant and equipment....       5,479    -218,642     -20,223
       Investment in subsidiaries ..............................     692,004     -32,005      -2,960
       Increase in deferred assets .............................      -6,545        -333         -31
  Net resources applied to investing activities ................     690,938    -250,980     -23,214
INCREASE IN CASH AND CASH EQUIVALENTS ..........................    -295,235    -188,609     -17,445
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD............     816,709     521,474      48,233
CASH & CASH EQUIVALENTS AT END OF THE PERIOD ...................$    521,474$    332,865US    30,788

* The exchange rate of 10.8116 was used for translation purposes.                                   

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CORPORACION DURANGO AND REPORTING GUARANTOR GROUP                                                          
PARTIALLY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)                                          
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS                                                
AS OF DECEMBER 31, 2006                                                                                    

                                                                                                           

                                           Thousands of Pesos               Thousands of Dollars           
                                              4Q          4Q                    4Q          4Q             
                                             2005        2006      Var         2005        2006     Var    

NET SALES ...............................$ 1,202,105$  1,389,365       16%     108,639     128,507      18%
COST OF SALES ...........................  1,022,005   1,136,262       11%      92,363     105,097      14%
     Gross profit........................    180,100     253,103       41%      16,276      23,410      44%

     Selling and Administrative expenses     148,498      99,367      -33%      13,421       9,191     -32%
     Operating income ...................     31,602     153,736      386%       2,855      14,219     398%
FINANCIAL EXPENSE:                                                                                         
Interest expense ........................    144,458     164,353       14%      13,055      15,202      16%
Interest income .........................    -24,492     -19,941      -19%      -2,213      -1,844     -17%
Exchange (gain) loss, net ...............   -100,525    -117,220       17%      -9,085     -10,842      19%
Gain on monetary position ...............   -103,767     -90,810      -12%      -9,378      -8,399     -10%
  Total financial expense ...............    -84,326     -63,618      -25%      -7,621      -5,883     -23%
OTHER INCOME (EXPENSES):                                                                                   
Other income (expense), net .............   -131,214     -58,244      -56%     -11,858      -5,387     -55%
  Total other income (expense) ..........   -131,214     -58,244      -56%     -11,858      -5,387     -55%
  Income (loss) before income and asset t    -15,286     159,110   N/A          -1,382      14,715  N/A    
Provisions for income and asset taxes ...     -6,450      49,295   N/A            -583       4,559  N/A    
Provision for deferred income taxes .....   -307,228     -49,111      -84%     -27,766      -4,542     -84%
  Net income after taxes ................    298,392     158,926      -47%      26,967      14,698     -45%
Impairment ..............................          0     227,510   N/A               0      21,043  N/A    
Discontinued operations .................    -92,170           0     -100%      -8,330           0    -100%
Loss (Gain) in subsidiaries .............    283,290    -278,181   N/A          25,604     -25,731  N/A    
Net income before minority interest......$   107,272$    209,597       95%       9,693      19,386     100%
  Minority interest......................      1,331      -2,016   N/A             120        -186  N/A    
  Majority net income....................$   105,941$    211,613      100%       9,573      19,572     104%

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CORPORACION DURANGO AND REPORTING GUARANTOR GROUP                                                          
PARTIALLY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)                                          
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS                                                
AS OF DECEMBER 31, 2006                                                                                    

                                                                                                           

                                           Thousands of Pesos               Thousands of Dollars           
                                              Ac          Ac                    Ac          Ac             
                                             2005        2006      Var         2005        2006     Var    

NET SALES ...............................$ 4,751,483$  5,423,787       14%     414,601$    483,945      17%
COST OF SALES ...........................  4,015,512   4,413,595       10%     350,365     393,833      12%
     Gross profit........................    735,971   1,010,192       37%      64,236      90,112      40%

     Selling and Administrative expenses     487,878     455,589       -7%      42,685      40,580      -5%
     Operating income ...................    248,093     554,603      124%      21,551      49,532     130%
FINANCIAL EXPENSE:                                                                                         
Interest expense ........................    592,733     666,523       12%      51,731      59,447      15%
Interest income .........................   -434,323     -58,511      -87%     -36,701      -5,251     -86%
Exchange (gain) loss, net ...............   -334,877     129,029   N/A         -29,549      10,143  N/A    
Gain on monetary position ...............   -197,284    -256,155       30%     -17,346     -23,205      34%
  Total financial expense ...............   -373,751     480,886   N/A         -31,865      41,134  N/A    
OTHER INCOME (EXPENSES):                                                                                   
Other income (expense), net .............   -236,473      59,905   N/A         -20,800       4,867  N/A    
  Total other income (expense) ..........   -236,473      59,905   N/A         -20,800       4,867  N/A    
  Income (loss) before income and asset t    385,371     133,622      -65%      32,616      13,265     -59%
Provisions for income and asset taxes ...      5,205      54,753      952%         437       5,030    1051%
Provision for deferred income taxes .....   -200,234      28,915   N/A         -18,871       2,672  N/A    
  Net income after taxes ................    580,400      49,954      -91%      51,050       5,563     -89%
Impairment ..............................          0     227,510   N/A               0      21,043  N/A    
Discontinued operations .................     41,171           0     -100%       3,432           0    -100%
Loss (Gain) in subsidiaries .............    353,384    -326,366   N/A          30,791     -29,981  N/A    
Net income before minority interest......$   185,845$    148,810      -20%      16,827$     14,501     -14%
  Minority interest......................       -586      -2,602      344%         -53        -235     343%
  Majority net income....................$   186,431$    151,412      -19%      16,880$     14,736     -13%

CORPORACION DURANGO, S.A.B. DE C.V. AND REPORTING GUARANTOR GROUP               
COMPLEMENTARY NOTES TO THE FINANCIAL INFORMATION                                

SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL POLICIES:                       
FOLLOWING IS A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE       
COMPANY IN THE PREPARATION OF THE PARTIALLY - CONSOLIDATED FINANCIAL            
STATEMENTS.                                                                     

1.1 CONSOLIDATION BASIS:                                                        
THE PARTIALLY - CONSOLIDATED FINANCIAL STATEMENTS INCLUDE THE FINANCIAL         
STATEMENTS OF CORPORACION DURANGO, S.A.B. DE C.V. AND THE FOLLOWING             
SUBSIDIARIES:                                                                   
ADMINISTRACION CORPORATIVA DE DURANGO, S.A. DE C.V.                       
CARTONPACK, S.A. DE C.V.                                                  
COMPANIA PAPELERA DE ATENQUIQUE, S.A. DE C.V.                             
EMPAQUES DE CARTON TITAN, S.A. DE C.V.                                    
INDUSTRIAS CENTAURO, S.A. DE C.V.                                         
PAPEL Y EMPAQUES TIZAYUCA, S.A. DE C.V.                                   
PONDEROSA INDUSTRIAL DE MEXICO, S.A. DE C.V.                              

ALL SIGNIFICANT INTERCOMPANY BALANCES AND TRANSACTIONS HAVE BEEN ELIMINATED FOR 
CONSOLIDATION PURPOSES. THE PARTIALLY - CONSOLIDATED FINANCIAL STATEMENTS       
INCLUDE THE ASSETS, LIABILITIES AND INCOME OR LOSS OF THE PARENT COMPANY AND    
THE SUBSIDIARIES WITH MORE THAN 50%  OF OWNERSHIP.                              

AS OF JUNE 1, 2004, THE MEXICAN BOARD FOR RESEARCH AND DEVELOPMENT OF FINANCIAL 
REPORTING STANDARDS, OR CINIF, ASSUMED THE RESPONSIBILITY OF ESTABLISHING       
MEXICAN ACCOUNTING AND REPORTING STANDARDS. AS PART OF ITS RESPONSIBILITY, AND  
AFTER DUE EXPOSURE IN 2004 AND 2005, THE CINIF ISSUED SEVERAL FINANCIAL         
REPORTING STANDARDS (NORMAS DE INFORMACION FINANCIERA, OR NIFS) THAT BECAME     
EFFECTIVE ON JANUARY 1, 2006.                                                   

THE PRINCIPAL OBJECTIVE OF THE CINIF IN ISSUING THE NIFS IS TO ACHIEVE GREATER  
CONCURRENCE BETWEEN MEXICAN GAAP AND INTERNATIONAL FINANCIAL REPORTING          
STANDARDS (IFRSS).                                                              

THE STRUCTURE OF THE NIFS IS AS FOLLOWS:                                        

- NEW BULLETINS AND INTERPRETATIONS TO THE BULLETINS ISSUED BY CINIF.           
- EXISTING BULLETINS ISSUED BY THE ACCOUNTING PRINCIPLES BOARD OF THE MEXICAN   
INSTITUTE OF PUBLIC ACCOUNTANTS THAT HAVE NOT BEEN AMENDED, REPLACED OR         
REPEALED BY THE NEW NIFS.                                                       
- IFRSS THAT ARE SUPPLEMENTARY GUIDANCE TO BE USED WHEN MEXICAN GAAP DOES NOT   
PROVIDE PRIMARY GUIDANCE.                                                       

THE CIRCULARS ISSUED BY THE ACCOUNTING PRINCIPLES BOARD WILL CONTINUE TO HAVE   
THE STATUS OF RECOMMENDATIONS AND WILL BE PART OF THE NIFS UNTIL SUCH TIME AS   
THEY ARE REPLACED OR REPEALED BY NIFS.                                          

THE NIFS ISSUED TO DATE ARE NOT EXPECTED TO HAVE A SIGNIFICANT EFFECT ON        
FINANCIAL INFORMATION REPORTING. THEY ARE THE FOLLOWING:                        

NIF A-1 "FINANCIAL INFORMATION STANDARDS STRUCTURE".                            
NIF A-2 "BASIC PRINCIPLES".                                                     
NIF A-3 "USERS REQUIREMENTS AND FINANCIAL STATEMENTS OBJECTIVES".               
NIF A-4 "FINANCIAL STATEMENTS QUALITATIVE CHARACTERISTICS".                     
NIF A-5 "FINANCIAL STATEMENTS BASIC ELEMENTS".                                  
NIF A-6 "RECOGNITION AND VALUATION".                                            
NIF A-7 "PRESENTATION AND DISCLOSURE".                                          
NIF A-8 "SUPPLEMENTARY STANDARDS TO MEXICAN GAAP".                              
NIF B-1 "ACCOUNTING CHANGES AND ERROR CORRECTIONS".                             

1.2 BASIS FOR COMPARISSON EFFECTS IN THE FINANCIAL STATEMENTS:                  
A) THE PARTIALLY CONSOLIDATED FINANCIAL STATEMENTS HAVE BEEN PREPARED IN        
ACCORDANCE WITH THE NIFS AND REFLECT THE PURCHASING POWER OF THE MEXICAN        
PESO AS OF THE MOST RECENT REPORTIND DATE. FOR COMPARISON PURPOSES,             
PARTIALLY CONSOLIDATED FINANCIAL STATEMENTS OR PRIOR YEAR HAVE ALSO BEEN        
RESTATED TO REFLECT IDENTICAL PURCHASING POWER, USING FACTORS DERIVED           
FROM CHANGES IN THE NATIONAL CONSUMER PRODUCTS INDEX (NCPI) ISSUED BY           
BANCO DE MEXICO.                                                                
B) CONVERSION FIGURES OF FOREIGN SUBSIDIARIES IS DONE IN ACCORDANCE WITH        
BULLETIN B-15 "FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION OF FINANCIAL       
STATEMENTS OF FOREIGN OPERATIONS" ACCORDINGLY , THE TRANSLATION IS DONE         
UNDER THE "FOREIGN ENTITIES"                                                    

1.3 VALUATION OF TEMPORARY INVESTMENTS:                                         
THESE INVESTMENTS ARE REALIZABLE WITHIN THREE MONTHS AND ARE VALUED AT MARKET   
PRICE.                                                                          
THE INCOME OR LOSS GENERATED IS INCLUDED IN THE STATEMENTS OF OPERATIONS.       

1.4 RIGHTS AND  LIABILITIES VALUATION IN FOREIGN CURRENCY:                      
ASSETS AND LIABILITIES IN FOREIGN CURRENCY, MAINLY IN AMERICAN DOLLARS, ARE     
EXPRESSED IN MEXICAN PESOS AT THE CLOSING OF THE YEAR EXCHANGE RATE.            
THE EXCHANGE RATE ON DECEMBER 31st, 2006 WAS $10.8116.                          

1.5 INVENTORY VALUATION:                                                        
INVENTORIES ARE STATED AT AVERAGE COST, AND DO NOT EXCEED MARKET VALUE.         
THE AVERAGE COST APROXIMATES THE LAST PURCHASE OR PRODUCTION COST.              

PROPERTY, PLANT AND EQUIPMENT:                                                  
PROPERTY, PLANT AND EQUIPMENT OF MEXICAN ORIGIN ARE RECORDED AT ACQUISITION     
COST AND ARE RESTATED TO REFLECT MEXICAN PESOS OF CONSTANT PURCHASING POWER     
USING FACTORS DERIVED FROM CHANGES IN THE NATIONAL CONSUMER PRICE INDEX         
(NCPI).                                                                         
PLANT AND EQUIPMENT OF NON-MEXICAN ORIGIN ARE RECORDED AT ACQUISITION COST AND  
THE ACQUISITION COST IS RESTATED TO CONSTANT CURRENCY USING THE INFLATION OF    
THE COUNTRY OF ORIGIN, THEN CONVERTED INTO MEXICAN PESOS AT THE EXCHANGE        
RATE IN EFFECT AT THE BALANCE SHEET DATE.                                       
DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT, IS CALCULATED BASED ON UNITS     
PRODUCED IN THE PERIOD IN RELATION TO THE TOTAL ESTIMATED PRODUCTION OF THE     
ASSETS OVER THEIR SERVICE LIVES. ASSETS ARE DEPRECIATED AS FOLLOWS:             
YEARS                     
BUILDINGS                 25-50                                                 
MACHINERY & EQUIPMENT     23-40                                                 
OFFICE EQUIPMENTS          5-10                                                 
TRANSPORTATION VEHICLES    1-5                                                  
COMPUTER EQUIPMENT         1-3                                                  

THESE ASSETS ARE EVALUATED ANNUALLY FOR POTENTIAL IMPAIRMENT.                   
RECURRING MAINTENANCE AND REPAIR EXPENDITURES ARE CHERGED TO OPERATING EXPENSES 
AS INCURRED. MAJOR OVERHAULS TO FIXED ASSETS ARE CAPITALIZED AND AMORTIZED OVER 
THE PERIOD IN WHICH BENEFITS ARE EXPECTED TO BE RECEIVED.                       
NET COMPREHENSIVE FINANCING COST INCURRED DURING THE PERIOD OF CONSTRUCTION AND 
INSTALLATION OF PROPERTY, PLANT AND EQUIPMENT IS CAPITALIZED AND RESTATED       
APPLIYING FACTORS DERIVED FROM CHANGES IN THE NCPI.                             

CONTINGENCY LIABILITIES:                                                        
LABOR OBLIGATIONS:                                                              
THE COMPANY ADOPTED THE NORMATIVE DISPOSITIONS RELATED TO BULLETIN D-3 "LABOR   
OBLIGATIONS" ISSUED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS, THIS        
NORMATIVITY MODIFIES THE BASIS FOR CUANTIFICATION, RECOGNITION AND DISCLOSURE   
OF EXPENSES AND LIABILITIES RELATED TO RETIREMENT AND SENIORITY PREMIUMS,       
INCLUDING FORMAL AND INFORMAL, REQUIRING ITS VALUATION USING THE ACTUARIAL      
METHOD OF "PROJECTED UNITARY CREDIT" WICH STATES THE OBLIGATION TO RECOGNIZE    
A LIABILITY (ASSET) OF TRANSITION AT THE MOMENT OF THE APPLICATION OF THIS      
BULLETIN, WHICH IS AMORTIZED IN DIRECT LINE OVER THE REMAINIG AVERAGE LABOR     
LIFE OF THE EMPLOYEES EXPECTED TO RECEIVE SUCH BENEFITS FROM THE RETIREMENT     
PLANS, REQUIRES AN ADDITIONAL LIABILITY IN CASE THE ACTUAL LIABILITY IS LARGER  
THAN THE PROJECTED NET LIABILITY (ASSET).                                       
THE COST OF THE EMPLOYEE RETIREMENT PLANS (PENSIONS AND SENIORITY PREMIUMS),    
ARE RECOGNIZED AS COST IN THE YEARS IN WHICH THE SERVICES ARE  PAID IN          
ACCORDANCE WITH CALCULATION PERFORMED BY INDEPENDENT ACTUARIES.                 
IN THE COMPANIES ESTABLISHED IN THE UNITED STATES OF AMERICA, THERE IS A        
BENEFIT AND RETIREMENT PLAN (THE PLAN), WHICH COVERS ALL THE EMPLOYEES THAT     
MEET CERTAIN ELEGIBILITY REQUIREMENTS. THE BENEFITS OF THE PLAN ARE MAINLY      
BASED IN THE YEARS OF SERVICE AND THE COMPENSATION OF SUCH EMPLOYEES.           
CORPORACION DURANGO, S.A. DE C.V. AND SUBSIDIARIES (THREE SUBSIDIARY            
COMPANIES) RECOGNIZES "MODIFICATIONS TO THE BULLETIN D-3 ON 2004" A NEW         
2004 PLAN "ADDITIONAL BENEFITS AT RETIREMENT" IN ACCORDANCE TO                  
MODIFICATIONS TO BULLETIN D-3.                                                  

STOCKHOLDERS' EQUITY:                                                           
CAPITAL STOCK, STOCK SALE PREMIUM, STATUTORY LEGAL RESERVE AND RETAINED         
EARNINGS, INCLUDE THE  RESTATED EFFECT, ACCORDING WITH THE NATIONAL             
CONSUMER PRICE INDEX (NCPI) FROM THE DATE THE CAPITAL WAS CONTRIBUTED           
AND FROM THE YEAR THE RESULTS AND PREMIUMS WERE DETERMINED RESPECTIVELY.        
THE RESTATED AMOUNT REPRESENTS THE REQUIRED AMOUNT TO MAINTAIN THE              
CONTRIBUTIONS AND ACCUMULATED RESULTS IN CONSTANT PESOS AS OF DECEMBER          
31st, 2006.                                                                     

FIXED AND VARIABLE EQUITY COMPONENTS                                            

    AMOUNT          NUMBER OF SHARES
FIXED PORTION             982,074           65,419,089                          
VARIABLE PORTION          678,873           45,222,022                          
----------         ------------ 
1,660,947          110,641,111  

DEFERRED TAXES:                                                                 
AS OF JANUARY 1st.,2000, WITH THE ISSUANCE OF BULLETIN D-4 ("DEFERRED TAXES"    
THE COMPANY RECOGNIZED TO THAT DATE (JANUARY 1st.,2000) THE INITIAL EFFECT      
OF DEFERRED TAXES DERIVED FROM TEMPORARY DIFFERENCES AS A GAIN OR A LOSS,       
IN SUBSECUENT PERIODS THE COMPANY IS IN COMPLIANCE WITH THE BULLETIN.           
IN ORDER TO RECOGNIZE THE DEFERRED INCOME TAX, THE HOLDING COMPANY AND ITS      
SUBSIDIARIES USE THE INTEGRAL ASSETS AND LIABILITIES METHOD, WHICH CALCULATES   
SUCH TAX, USING THE APPLICABLE STATUTORY TAX RATE TO THE TEMPORARY DIFFERENCES  
BETWEEN BOOK AND TAX VALUES OF THE ASSETS AND LIABILITIES AS OF THE END OF THE  
PERIOD.                                                                         

DISCONTINUED OPERATIONS:                                                        
THE COMPANY REPORTS ON DISCONTINUED OPERATIONS THE RESULT OF THE PARTICLEBOARD  
PLANT FROM PONDEROSA INDUSTRIAL DE MEXICO, S.A. DE C.V., FOR 2005.              

BUSINESS SEGMENTS INFORMATION:                                                  
SEGMENT REPORTING INFORMATION IS PREPARED IN ACCORDANCE WITH BULLETIN B-5       
"FINANCIAL INFORMATION BY SEGMENT". THE SEGMENTS REPORT BASED ON THE INTERNAL   
REPORT METHOD USED BY THE COMPANY.                                              
THE COMPANY PRESENTS THE FOLLOWING BUSINESS SEGMENTS:                           
1. PACKAGING. THIS SEGMENT INCLUDES THE PRODUCTION AND SALES OF CORRUGATED      
CONTAINER, MULTI-WALL SACKS AND PAPER TUBES.                                    
2. PAPER. THIS SEGMENT INCLUDES THE PRODUCTION AND SALES OF KRAFT AND           
SEMI-KRAFT PAPER PRODUCED FROM VIRGIN FIBERS OR RECYCLED FIBERS.                
3. OTHERS. THIS SEGMENT INCLUDES THE PRODUCTION AND SALE OF PLYWOOD.            
AS OF DECEMBER 31st., 2006 AND 2005, THE SEGMENT INFORMATION IS PRESENTED AS    
FOLLOWS:                                                                        

PROPERTY    
PLANT AND     
TOTAL          EQUIPMENT            SEGMENT 
2006          INCOME      ACQUISITION, NET         ASSETS               
------        ---------    ----------------   --------------              
PACKAGING        4,814,823         116,066          28,239,771                  
PAPER            3,402,162         102,597           9,235,650                  
OTHERS             125,310             (21)            447,288                  
ELIMINATONS     (2,918,508)                        (23,971,627)                 
----------     ------------      -------------- 
TOTAL            5,423,787         218,642          13,951,082                  
==========     ============      ============== 

PROPERTY    
PLANT AND     
TOTAL          EQUIPMENT          SEGMENT   
2005          INCOME      ACQUISITION, NET       ASSETS                 
------        ---------    ----------------  --------------               
PACKAGING        4,571,840         (26,872)        28,419,124                   
PAPER            2,926,352          14,481          8,809,371                   
OTHERS             106,603           6,912          1,090,638                   
ELIMINATIONS    (2,853,312)                       (24,148,173)                  
----------     ------------     --------------  
TOTAL            4,751,483         (5,479)         14,170,960                   
==========     ============     ==============  

THE FINANCIAL INFORMATION PRESENTED ABOVE IS USED IN THE DECISITION MAKING      
PROCESS BY THE COMPANY.                                                         

INTERNAL CONTROL:                                                               
THE COMPANY HAS STARTED IMPLEMENTATION ON THE SARBANES OXLEY ACT WITH THE       
ADVISE OF EXPERT ADVISORS.                                                      

SIGNATURES                                                                      

Pursuant to the requirements of the Securities Exchange Act of 1934, the        
registrant has duly caused this report to be signed on its behalf by the        
undersigned, thereunto duly authorized. CORPORACION DURANGO, S.A. DE C.V.       

Date:  March 21, 2007                   By /s/ Mayela Rincon de Velasco         
                                --------------------------------
                               Name:  Mayela Rincon de Velasco
                              Title: Chief Financial Officer

Dates Referenced Herein   and   Documents Incorporated By Reference

This 6-K Filing		Date		Other Filings
		6/1/04
		12/31/05		20-F, 6-K
		1/1/06
For The Period Ended		9/30/06		6-K
		12/31/06		6-K
Corrected On		3/21/07
Filed On / Filed As Of		3/22/07		6-K
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