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

Filed On 11/17/06 10:39am ET   ·   SEC File 1-13148   ·   Accession Number 925262-6-13

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

Document/Exhibit                   Description                      Pages   Size 

 1: 6-K         Corporacion Durango Partially Consolidaded 3q06       10±    42K 
                          Results                                                

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 August, 2006             
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                                       
PARTIALLY CONSOLIDATED CONDENSED BALANCE SHEETS                                         
AS OF DECEMBER 31, 2005 AND SEPTEMBER 30, 2006 (UNAUDITED)                              
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS                             
AS OF SEPTEMBER 30, 2006                                                                
(Stated in thousands of Pesos and Dollars)                                              
                                                                                        
                                                                              US$ DLLS. 
                                                      December 31, Sep 30,     Sep 30,  
                                                         2005        2006        2006   

     ASSETS                                                                             
CURRENT ASSETS:                                                                         
  Cash and cash equivalents ........................$    513,505$    303,757      27,631
  Accounts receivable, net .........................   1,108,194   1,243,279     113,092
  Taxes recoverable and other assets ...............      66,947      42,869       3,899
  Inventories, net .................................     808,737     827,642      75,285
  Prepaid expenses .................................       4,888      16,370       1,489
            Total current assets ...................   2,502,271   2,433,917     221,396
LONG-TERM RELATED PARTIES ..........................     292,457     313,906      28,554
PROPERTY, PLANT AND EQUIPMENT, net .................   7,356,100   7,642,205     695,157
INVESTMENT IN SUBSIDIARIES .........................   3,628,952   3,676,268     334,404
OTHER ASSETS, net ..................................     204,195     189,953      17,279
            Total  assets ..........................$ 13,983,975$ 14,256,249   1,296,789

     LIABILITIES AND STOCKHOLDERS' EQUITY                                               
CURRENT LIABILITIES:                                                                    
  Bank loans and current portion of long-term debt .     192,857     173,960      15,824
  Interest payable .................................       2,708         825          75
  Trade accounts payable ...........................     402,773     345,604      31,437
  Notes payable ....................................      27,725      25,043       2,278
  Accrued liabilities ..............................     284,020     448,907      40,834
  Employee profit-sharing ..........................         291      24,552       2,233
            Total  current liabilities .............     910,374   1,018,891      92,681
LONG-TERM DEBT .....................................   5,928,885   5,767,267     524,607
LONG-TERM RELATED PARTIES ..........................     792,125     856,355      77,896
LONG-TERM NOTES PAYABLE ............................      21,093      17,596       1,601
DEFERRED TAXES......................................   1,195,046   1,310,980     119,250
LIABILITY FOR EMPLOYEE BENEFITS.....................     308,338     303,502      27,607
            Total long term liabilities ............   8,245,487   8,255,700     750,962
            Total  liabilities .....................   9,155,861   9,274,591     843,643
STOCKHOLDERS' EQUITY:                                                                   
  Majority interest ................................   4,799,993   4,953,214     450,558
  Minority interest ................................      28,121      28,444       2,587
            Total stockholders' equity .............   4,828,114   4,981,658     453,146
            Total liabilities and stockholders' equi$ 13,983,975$ 14,256,249   1,296,789

               Exchange rate: $ 10.9935                                                 

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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 SEPTEMBER 30, 2006                                                                            
(Stated in thousands of Pesos and Dollars)                                                          
                                                                                                    
                                                                                              *     
                                                                  Full Year   Acum. Sep   Acum. Sep 
                                                                     2005        2006      US$ 2006 

OPERATING ACTIVITIES:                                                                               
Net income (loss) ..............................................$    182,990$    -59,427      -5,406
    Add (deduct)- Charges (credits) to income which do                                              
       not require (generate) resources:                                                            
       Loss in subsidiaries ....................................     347,999     -47,885      -4,356
       Depreciation and amortization ...........................     266,372     193,103      17,565
       Loss (gain) on sale of property, plant and equipment ....      10,786       6,350         578
       Deferred income taxes ...................................    -197,173      76,845       6,990
       Other....................................................     -26,291      19,404       1,765
       Total items which do not require cash....................     401,693     247,817      22,542
  Net resources generated from income ..........................     584,683     188,390      17,136
    Changes in operating assets and liabilities:                                                    
    Decrease (Increase) in inventories .........................     -95,941     -18,905      -1,720
    Decrease (Increase) in current assets ......................      26,877      12,597       1,146
    Decrease (increase) in account receivables, net ............      -1,467    -135,086     -12,288
    (Decrease) increase in accounts payable and                                                     
      accrued liabilities ......................................    -161,166     127,414      11,590
  Resources generated by continued operating  ..................     352,986     174,410      15,865
  Assets and liabilities discontinued ..........................     -23,735           0           0
  Resources generated by operating activities ..................     329,251     174,410      15,865
FINANCING ACTIVITIES:                                                                               
       Increase (Decrease) in bank loans and others ............  -4,645,024    -198,149     -18,024
       Increase (Decrease) in capital ..........................     297,879           0           0
       Gain on shares sales ....................................   3,046,878           0           0
  Net resources generated from financing activities ............  -1,300,267    -198,149     -18,024
INVESTMENT ACTIVITIES:                                                                              
       Acquisition and sale of property, plant and equipment....       5,395    -178,211     -16,211
       Acquisition of shares ...................................     681,430      -3,945        -359
       Increase in deferred assets .............................      -6,445      -3,853        -350
  Net resources applied to investing activities ................     680,380    -186,009     -16,920
INCREASE IN CASH AND CASH EQUIVALENTS ..........................    -290,636    -209,748     -19,079
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD............     804,141     513,505      46,710
CASH & CASH EQUIVALENTS AT END OF THE PERIOD ...................$    513,505$    303,757US    27,631

* The exchange rate of 10.9935 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 SEPTEMBER 30, 2006                                                                                   
                                                                                                           

                                           Thousands of Pesos               Thousands of Dollars           
                                              3Q          3Q                    3Q          3Q             
                                             2005        2006      Var         2005        2006     Var    

NET SALES ...............................$ 1,166,254$  1,429,698       23%     103,833     130,049      25%
COST OF SALES ...........................    976,195   1,170,456       20%      86,912     106,468      23%
     Gross profit........................    190,059     259,242       36%      16,921      23,581      39%

     Selling and Administrative expenses     114,152     122,033        7%      10,163      11,100       9%
     Operating income ...................     75,907     137,209       81%       6,758      12,481      85%
FINANCIAL EXPENSE:                                                                                         
Interest expense ........................    173,354     163,877       -5%      15,434      14,907      -3%
Interest income .........................    -19,152     -13,432      -30%      -1,705      -1,222     -28%
Exchange (gain) loss, net ...............      8,637    -184,040   N/A             769     -16,741  N/A    
Gain on monetary position ...............    -30,994    -116,118      275%      -2,759     -10,562     283%
  Total financial expense ...............    131,845    -149,713   N/A          11,739     -13,618  N/A    
OTHER INCOME (EXPENSES):                                                                                   
Other income (expense), net .............     23,750     -15,323   N/A           2,115      -1,394  N/A    
  Total other income (expense) ..........     23,750     -15,323   N/A           2,115      -1,394  N/A    
  Income (loss) before income and asset t    -32,188     271,599   N/A          -2,866      24,705  N/A    
Provisions for income and asset taxes ...      8,199        -506     -106%         730         -46    -106%
Provision for deferred income taxes .....   -183,208     135,359   N/A         -16,311      12,313  N/A    
  Net income after taxes ................    142,821     136,746       -4%      12,715      12,438      -2%
Discontinued operations .................    175,603           0     -100%      15,634           0    -100%
Loss (Gain) in subsidiaries .............   -152,803     -45,396      -70%     -13,643      -4,129     -70%
Net income before minority interest......$   120,021$    182,142       52%      10,724      16,567      54%
  Minority interest......................    -14,080         587   N/A          -1,254          53  N/A    
  Majority net income....................$   134,101$    181,555       35%      11,978      16,514      38%

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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 SEPTEMBER 30, 2006                                                                                   
                                                                                                           

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

NET SALES ...............................$ 3,495,389$  3,973,139       14%     305,962$    355,438      16%
COST OF SALES ...........................  2,947,971   3,227,552        9%     258,002     288,736      12%
     Gross profit........................    547,418     745,587       36%      47,960      66,702      39%

     Selling and Administrative expenses     334,222     350,811        5%      29,264      31,389       7%
     Operating income ...................    213,196     394,776       85%      18,696      35,313      89%
FINANCIAL EXPENSE:                                                                                         
Interest expense ........................    441,458     494,541       12%      38,676      44,245      14%
Interest income .........................   -403,591     -37,984      -91%     -34,488      -3,407     -90%
Exchange (gain) loss, net ...............   -230,783     242,498   N/A         -20,464      20,985  N/A    
Gain on monetary position ...............    -92,094    -162,835       77%      -7,968     -14,806      86%
  Total financial expense ...............   -285,010     536,220   N/A         -24,244      47,017  N/A    
OTHER INCOME (EXPENSES):                                                                                   
Other income (expense), net .............   -103,655     116,352   N/A          -8,942      10,254  N/A    
  Total other income (expense) ..........   -103,655     116,352   N/A          -8,942      10,254  N/A    
  Income (loss) before income and asset t    394,551     -25,092   N/A          33,998      -1,450  N/A    
Provisions for income and asset taxes ...     11,478       5,375      -53%       1,020         471     -54%
Provision for deferred income taxes .....    105,354      76,845      -27%       8,895       7,214     -19%
  Net income after taxes ................    277,719    -107,312   N/A          24,083      -9,135  N/A    
Discontinued operations .................    131,320           0     -100%      11,762           0    -100%
Loss (Gain) in subsidiaries .............     69,782     -47,885   N/A           5,187      -4,250  N/A    
Net income before minority interest......$    76,617$    -59,427   N/A           7,134$     -4,885  N/A    
  Minority interest......................     -1,888        -577      -69%        -173         -49     -72%
  Majority net income....................$    78,505$    -58,850   N/A           7,307$     -4,836  N/A    

CORPORACION DURANGO, S.A. 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. DE                        
C.V. AND THE FOLLOWING SUBSIDIARIES:                                            
COMPANIA PAPELERA DE ATENQUIQUE, S.A. DE C.V.                             
EMPAQUES DE CARTON TITAN, S.A. DE C.V.                                    
ADMINISTRACION CORPORATIVA DE DURANGO, 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 MEXICAN GAAP                              
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`S EXCHANGE RATE.                                     
THE EXCHANGE RATE ON SEPTEMBER 30st, 2006 WAS                                   
$10.9935.                                                                       

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 SEPTEMBER 30st, 2006.                                      

FIXED AND VARIABLE EQUITY COMPONENTS                                            
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                          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 SEPTEMBER 30st., 2006 AND 2005, THE SEGMENT                               
INFORMATION IS PRESENTED AS FOLLOWS:                                            
<caption>                                                                       
                                                                [Download Table]
                                                               
                                  PROPERTY                     
                                 PLANT AND                     
                  TOTAL          EQUIPMENT            SEGMENT  
    2006          INCOME      ACQUISITION, NET         ASSETS  
   ------        ---------    ----------------   --------------
PACKAGING        3,539,704          65,827          30,785,134 
PAPER            2,430,146          51,826           9,072,790 
OTHERS              91,562          60,558             669,960 
ELIMINATONS     (2,088,273)                        (26,271,635)
                ----------     ------------      --------------
TOTAL            3,973,139         178,211          14,256,249 
                ==========     ============      ==============

<caption>                                                                       
                                                                [Download Table]
                                                              
                                  PROPERTY                    
                                 PLANT AND                    
                  TOTAL          EQUIPMENT          SEGMENT   
    2005          INCOME      ACQUISITION, NET       ASSETS   
   ------        ---------    ----------------  --------------
PACKAGING        3,428,872          10,578         27,957,674 
PAPER            2,174,986          41,448          8,616,926 
OTHERS              69,210         (47,001)         1,129,277 
ELIMINATIONS    (2,177,679)                       (22,977,200)
                ----------     ------------     --------------
TOTAL            3,495,389           5,025         14,726,677 
                ==========     ============     ==============

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:  November 17, 2006                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
Filed On / Filed As Of		11/17/06		6-K
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