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, 2005
Durango Corporation
(f/k/a Grupo Industrial Durango, S.A. de C.V.)
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(Translation of registrant's name into English)
Torre Corporativa Durango, Potasio 150, Cuidad Industrial,
Durango, Durango, Mexico
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(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-_____________.
CORPORACION DURANGO, S.A. DE C.V. AND REPORTING GUARANTOR GROUP
COMPLEMENTARY NOTES TO THE FINANCIAL INFORMATION
CORPORACION DURANGO AND REPORTING GUARANTOR GROUP
PARTIALLY CONSOLIDATED CONDENSED BALANCE SHEETS
AS OF DECEMBER 31, 2004 AND JUNE 30, 2005 (UNAUDITED)
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS
AS OF JUNE 30, 2005
(Stated in thousands of Pesos and Dollars)
US$ DLLS.
December 31, June 30, June 30,
2004 2005 2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ........................$ 765,589$ 269,553 25,016
Accounts receivable, net ......................... 1,053,602 1,125,827 104,483
Taxes recoverable and other assets ............... 92,921 64,474 5,984
Inventories, net ................................. 678,581 759,604 70,496
Prepaid expenses ................................. 1,053 3,566 331
Current assets of discontinued operations ........ 105,318 120,150 11,151
Total current assets ................... 2,697,064 2,343,174 217,460
LONG-TERM RELATED PARTIES .......................... 298,129 405,764 37,657
PROPERTY, PLANT AND EQUIPMENT, net ................. 7,357,116 7,294,005 676,925
INVESTMENT IN SUBSIDIARIES ......................... 3,873,543 3,022,366 280,493
OTHER ASSETS, net .................................. 274,887 237,564 22,047
Noncurrent assets of discontinued operations ....... 251,265 235,483 21,854
Total assets ..........................$ 14,752,004$ 13,538,356 1,256,437
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank loans and current portion of long-term debt . 126,175 139,809 12,975
Interest payable ................................. 1,040 1,451 135
Trade accounts payable ........................... 304,975 377,171 35,004
Notes payable .................................... 37,258 32,768 3,041
Accrued liabilities .............................. 492,425 333,638 30,964
Employee profit-sharing .......................... 855 848 79
Current liabilities of discontinued operations ... 127,915 68,641 6,370
Total current liabilities ............. 1,090,643 954,326 88,567
LONG-TERM DEBT ..................................... 6,174,203 5,886,208 546,274
LONG-TERM RELATED PARTIES .......................... 1,521,143 591,005 54,849
LIABILITY FOR CAPITALIZATION........................ 3,183,926 0 0
LONG-TERM NOTES PAYABLE ............................ 47,212 30,409 2,822
DEFERRED TAXES...................................... 915,185 1,174,859 109,034
LIABILITY FOR EMPLOYEE BENEFITS..................... 302,851 303,926 28,206
NONCURRENT LIABILITIES OF DISCONTINUES OPERATIONS .. 156,205 141,236 13,108
Total long term liabilities ............ 12,300,725 8,127,643 754,292
Total liabilities ..................... 13,391,368 9,081,969 842,859
STOCKHOLDERS' EQUITY:
Majority interest ................................ 1,331,961 4,427,646 410,911
Minority interest ................................ 28,675 28,741 2,667
Total stockholders' equity ............. 1,360,636 4,456,387 413,578
Total liabilities and stockholders' equi$ 14,752,004$ 13,538,356 1,256,437
Exchange rate: $ 10.7752
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 JUNE 30, 2005
(Stated in thousands of Pesos and Dollars)
*
Full Year Acum. June Acum. June
2004 2005 US$ 2005
OPERATING ACTIVITIES:
Net income (loss) ..............................................$ -146,790$ -41,475 -3,849
Add (deduct)- Charges (credits) to income which do
not require (generate) resources:
Loss in subsidiaries .................................... 399,016 212,047 19,679
Depreciation and amortization ........................... 256,014 126,103 11,703
Amortization of debt issuance cost and other
financing costs ..................................... 325,312 0 0
Loss (gain) on sale of property, plant and equipment .... 13,035 -303 -28
Deferred income taxes ................................... -114,757 274,716 25,495
Other.................................................... 37,801 16,629 1,543
Total items which do not require cash.................... 916,421 629,192 58,393
Net resources generated from income .......................... 769,631 587,717 54,543
Changes in operating assets and liabilities:
Decrease (Increase) in inventories ......................... 95,290 -81,023 -7,519
Decrease (Increase) in current assets ...................... -89,125 25,934 2,407
Decrease (increase) in account receivables, net ............ 151,513 -72,225 -6,703
(Decrease) increase in accounts payable and
accrued liabilities ...................................... 26,341 -90,677 -8,415
Resources generated by continued operating .................. 953,650 369,726 34,313
Assets and liabilities discontinued .......................... 22,080 -74,106 -6,877
Resources generated by operating activities .................. 975,730 295,620 27,435
FINANCING ACTIVITIES:
Increase (Decrease) in bank loans and others ............ -596,569 -4,430,675 -411,192
Increase (Decrease) in capital .......................... 47 282,681 26,234
Gain on shares acquisition .............................. 0 2,891,425 268,341
Net resources generated from financing activities ............ -596,522 -1,256,569 -116,617
INVESTMENT ACTIVITIES:
Acquisition of property, plant and equipment............. -144,738 -36,129 -3,353
Sale of property, plant and equipment.................... 14,448 682 63
Disposition of subsidiaries ............................. 0 478,769 44,432
Increase in deferred assets ............................. -44,910 21,591 2,004
Net resources applied to investing activities ................ -175,200 464,913 43,147
INCREASE IN CASH AND CASH EQUIVALENTS .......................... 204,008 -496,036 -46,035
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD............ 561,581 765,589 71,051
CASH & CASH EQUIVALENTS AT END OF THE PERIOD ...................$ 765,589$ 269,553US 25,016
* The exchange rate of 10.7752 was used for translation purposes.
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 JUNE 30, 2005
Thousands of Pesos Thousands of Dollars
2Q 2Q 2Q 2Q
2004 2005 Var 2004 2005 Var
NET SALES ...............................$ 1,064,257$ 1,126,270 6% 88,505 104,524 18%
COST OF SALES ........................... 852,060 945,379 11% 70,858 87,737 24%
Gross profit........................ 212,197 180,891 -15% 17,647 16,787 -5%
Selling and Administrative expenses 107,874 107,203 -1% 8,971 9,949 11%
Operating income ................... 104,323 73,688 -29% 8,676 6,838 -21%
FINANCIAL EXPENSE:
Interest expense ........................ 373,466 122,256 -67% 31,058 11,346 -63%
Interest income ......................... -16,473 -13,182 -20% -1,370 -1,223 -11%
Exchange (gain) loss, net ............... 341,220 -251,536 N/A 28,376 -23,344 N/A
Gain on monetary position ............... -1,799 -1,624 -10% -150 -151 1%
Total financial expense ............... 696,414 -144,086 N/A 57,914 -13,372 N/A
OTHER INCOME (EXPENSES):
Other income (expense), net ............. -16,870 -61,715 266% -1,403 -5,728 308%
Total other income (expense) .......... -16,870 -61,715 266% -1,403 -5,728 308%
Income (loss) before income and asset t -608,961 156,059 N/A -50,641 14,482 N/A
Provisions for income and asset taxes ... 6,672 3,121 -53% 555 290 -48%
Provision for deferred income taxes ..... -2,073 188,387 N/A -172 17,483 N/A
Net income after taxes ................ -613,560 -35,449 -94% -51,024 -3,291 -94%
Discontinued operations ................. 9,638 -30,217 N/A 801 -2,804 N/A
Loss (Gain) in subsidiaries ............. -283,585 -36,062 -87% -23,762 -3,348 -86%
Net income before minority interest......$ -339,613$ 30,830 N/A -28,063 2,861 N/A
Minority interest...................... 498 -1,922 N/A 41 -178 N/A
Majority net income....................$ -340,111$ 32,752 N/A -28,104 3,039 N/A
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 JUNE 30, 2005
Thousands of Pesos Thousands of Dollars
Ac Ac Ac Ac
2004 2005 Var 2004 2005 Var
NET SALES ...............................$ 2,075,443$ 2,217,329 7% 175,194 202,129 15%
COST OF SALES ........................... 1,661,375 1,877,124 13% 140,241 171,090 22%
Gross profit........................ 414,068 340,205 -18% 34,953 31,039 -11%
Selling and Administrative expenses 208,493 209,505 0% 17,597 19,101 9%
Operating income ................... 205,575 130,700 -36% 17,356 11,938 -31%
FINANCIAL EXPENSE:
Interest expense ........................ 697,018 255,233 -63% 58,796 23,242 -60%
Interest income ......................... -25,658 -365,968 1326% -2,157 -32,783 1420%
Exchange (gain) loss, net ............... 277,062 -227,940 N/A 22,876 -21,233 N/A
Gain on monetary position ............... -146,396 -58,165 -60% -12,546 -5,209 -58%
Total financial expense ............... 802,026 -396,840 N/A 66,969 -35,983 N/A
OTHER INCOME (EXPENSES):
Other income (expense), net ............. -17,964 -121,289 575% -1,497 -11,057 639%
Total other income (expense) .......... -17,964 -121,289 575% -1,497 -11,057 639%
Income (loss) before income and asset t -614,415 406,251 N/A -51,110 36,864 N/A
Provisions for income and asset taxes ... 9,946 3,121 -69% 836 290 -65%
Provision for deferred income taxes ..... 26,558 274,716 934% 2,283 25,206 1004%
Net income after taxes ................ -650,919 128,414 N/A -54,229 11,368 N/A
Discontinued operations ................. -6,914 -42,158 510% -618 -3,872 527%
Loss (Gain) in subsidiaries ............. 434,881 212,047 -51% 38,011 18,830 -50%
Net income before minority interest......$ -1,078,88$ -41,475 -96% -91,622 -3,590 -96%
Minority interest...................... -2,824 -3,050 8% -244 -279 14%
Majority net income....................$ -1,076,06$ -38,425 -96% -91,378 -3,311 -96%
DEBT RESTRUCTURE:
THE COMPANY HAS SUCCESFULLY CONCLUDED AND FORMALIZED ALL THE AGREEMENTS
RELATED WITH ITS FINANCIAL RESTRUCTURING, ON FEBRUARY 23 rd., 2005.THIS
PROCESS HAS SIGNIFICANTLY STRENGHTENED THE FINANCIAL POSITION OF THE
COMPANY AND CONSOLIDATED ITS LEADERSHIP AS THE LARGEST PAPER PRODUCER
IN MEXICO.
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.
INTERCOMPANY BALANCES AND TRANSACTIONS HAVE BEEN ELIMINATED FOR
CONSOLIDATION PURPOSES. THE PARTIALLY - CONSOLIDATED FINANCIAL
STATEMENTS INCLUDE THE ASSETS, LIABILITIES AND INCOME OF THE
PARENT COMPANY AND THE SUBSIDIARIES WITH MORE THAN 50% OF OWNERSHIP.
1.2 BASIS FOR COMPARISSON EFFECTS IN THE FINANCIAL STATEMENTS:
A) THE CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY HAVE BEEN
PREPARED IN ACCORDANCE WITH BULLETIN B-10, AND ITS AMMENDMENTS,
ISSUED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS.THIS BULLETIN
REQUIRES A RESTATEMENT OF ALL THE FINANCIAL STATEMENTS PRESENTED IN
CONSTANT MEXICAN PESOS AT THE DATE OF THE LAST ISSUED BALANCE SHEET.
THEREFORE, THE FINANCIAL STATEMENTS ARE COMPARABLE TO THE PREVIOUS
YEAR.
THE NUMBERS ARE COMPARABLE IN THE SAME CURRENCY. CONSEQUENTLY, THE
FINANCIAL STATEMENTS OF THE PREVIOUS YEAR HAVE BEEN RESTATED IN THE
CURRENCY AS OF THE DATE THE LAST FINANCIAL STATEMENTS WERE ISSUED.
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 INCOME STATEMENT.
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 JUNE 30st, 2005 WAS $10.7752.
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 ARE RECORDED AT ACQUISITION COST AND
RESTATED USING THE NATIONAL CONSUMER PRICE INDEX (NCPI) TO THE
HISTORICAL COST. EXCEPT FOR MACHINERY AND EQUIPMENT OF FOREIGN
ORIGIN, RESTATED ACQUISITION COST IS EXPRESSED IN THE CURRENCY OF
THE COUNTRY OF ORIGIN, CONVERTED INTO MEXICAN PESOS AT THE MARKET
EXCHANGE RATE IN EFFECT AT THE BALANCE SHEET DATE.
THE COMPANY CAPITALIZES THE FINANCIAL INTEGRAL COST IDENTIFIED WITH
THE RELATED LIABILITY TO EACH PROJECT. DURING THE PERIOD THE COMPANY
DID NOT REGISTER ANY AMOUNT UNDER THIS CONCEPT.
DEPRECIATION:
DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT, IS CALCULATED IN
ACCORDANCE WITH RESTATED ASSET VALUE AND IS CALCULATED USING THE
PRODUCTION UNITS METHOD BASED ON THE USEFUL LIFE AND ESTIMATED
PRODUCTION CAPACITY OF SUCH ASSETS. ASSETS ARE DEPRECIATED AS
FOLLOWS:
YEARS
BUILDINGS 25-50
MACHINERY & EQUIPMENT 23-40
OFFICE EQUIPMENTS 5-10
TRANSPORTATION VEHICLES 1-5
COMPUTERS 1-3
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 REVELATION 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 STUDIES 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 RESERVES 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 JUNE 30st,
2005.
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
IN FAVOR OR AGAINST,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 INCOME TAX RATE TO THE
TEMPORARY DIFFERENCES BETWEEN BOOK AND TAX VALUES OF THE ASSETS AND
LIABILITIES AT THE DATE OF THE FINANCIAL STATEMENTS.
DISCONTINUED OPERATIONS:
THE COMPANY REPORTS ON DISCONTINUED OPERATIONS THE RESULT OF THE
SALE OF THE PARTICLEBOARD PLANT FROM PONDEROSA INDUSTRIAL DE MEXICO,
S.A. DE C.V., FOR 2005 AND 2004 PERIODS.
BUSINESS SEGMENTS INFORMATION:
SEGMENT REPORTING INFORMATION IS PREPARED IN ACCORDANCE WITH THE
INTERNATIONAL NORM OF ACCOUNTING 14 (NIC14). THE SEGMENTS REPORT
BASED ON THE INTERNAL REPORT METHOD USED BY THE COMPANY.
THE COMPANY PRESENTS THE FOLLOWING BUSINESS SEGMENTS:
1. PACKAGING. PRODUCTION AND SALES OF CORRUGATED CONTAINER, AND
MULTIWALL BAGS AND SACKS.
2. PAPER. PRODUCTION AND SALES OF KRAFT AND SEMI-KRAFT PAPER
PRODUCED FROM VIRGIN FIBERS OR RECYCLED PAPER.
3. OTHERS. PRODUCTION AND SALE OF PLYWOOD AND PARTICLEBOARD.
INTER-SEGMENTS SELLING PRICES ARE DETERMINED BY THE MARKET .
THE COMPANY EVALUATES PERFORMANCE OF EACH BUSINESS UNIT BASED
ON OPERATING RESULTS .
AS OF JUNE 30st., 2005 AND 2004, THE SEGMENT INFORMATION IS
PRESENTED AS FOLLOWS:
PROPERTY
PLANT AND
TOTAL EQUIPMENT SEGMENT
2005 INCOME ACQUISITION ASSETS
------ --------- ------------ --------------
PACKAGING 2,101,142 27,369 21,247,725
PAPER 1,357,331 8,117 8,102,280
OTHERS 43,511 643 904,262
ELIMINATONS (1,284,655) (17,071,544)
---------- ------------ --------------
TOTAL 2,217,329 36,129 13,182,723
========== ============ ==============
PROPERTY
PLANT AND
TOTAL EQUIPMENT SEGMENT
2004 INCOME ACQUISITION ASSETS
------ --------- ------------ --------------
PACKAGING 1,899,557 56,543 29,006,070
PAPER 1,182,988 3,738 8,548,395
OTHERS 47,595 147 830,425
ELIMINATIONS (1,054,697) (23,967,964)
---------- ------------ --------------
TOTAL 2,075,443 60,428 14,416,926
========== ============ ==============
THE FINANCIAL INFORMATION PRESENTED ABOVE IS USED IN THE
DECISITION MAKING PROCESS BY THE COMPANY.
INTERNAL CONTROL:
THE COMPANY HAS STARTED IMPLEMENTETION ON THE SARBANES OXLEY
ACT WITH THE ADVICE OF EXPERT CONSULTANTS.
THE FINANCIAL INFORMATION PRESENTED ABOVE IS USED IN THE
DECISITION MAKING PROCESS BY THE COMPANY.
INTERNAL CONTROL:
THE COMPANY HAS STARTED IMPLEMENTETION ON THE SARBANES OXLEY
ACT WITH THE ADVICE OF EXPERT CONSULTANTS.
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: August 26, 2005 By /s/ Mayela Rincon de Velasco
--------------------------------
Name: Mayela Rincon de Velasco
Title: Chief Financial Officer