SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K/A
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16
OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 31, 2001
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-_____________.
CORPORACION DURANGO
2001 Third Quarter Results
Durango, Mexico, Oct. 31 2001. Corporacion Durango,S.A. de C.V.,
(DGO) the largest integrated paper producer in Latin America, today
announced its results for the third quarter ended September 30, 2001
and accumulated nine months of 2001. Figures were prepared in accordance
with generally accepted accounting principles in Mexico, restated in
constantMexican Pesos and converted into U.S. Dollars using the exchange
rate of each respective period.
BUSINESS ENVIRONMENT
Weak global economic conditions throughout the quarter, in addition to
the uncertainly created by the events of September 11, as well as a
strong peso and higher energy costs, negatively affected our third
quarter results. Each of our businesses was hurt by a drop in demand
and pricing.
Positives
Sequential EBITDA of 3Q01 equal to
2Q01, and slightly better than 1Q01
Strong EBITDA of US$ 46.5 million
Strong EBITDA Margin of 19%
Cost of Sales decreased 22%
Personnel reduction of 1840 people,
or 16% of total payroll
Unit production cost decreased 8%
SG&A expense decreased 13%
Successful exchange offer (Sep. 5)
Positive intercompany merger
Higher financial flexibility
Access to significant NOL's
Efficient use of WC and financial
discipline
Negatives
Expensive market-related downtime
Shipments declined 15%
Mix Price declined 8%
Net sales declined 22%
EBITDA declined 17%
NOTE - Shipments and sales comparison were negatively
impacted by 5% from divestures
Outlook
Expected EBITDA for 4Q01 similar to 3Q01
Expected EBITDA for 2002 better than 2001
Improved cost structure and asset base 2002
Third Quarter 2001
Shipments
Volume was the key largest single factor affecting our performance
during this quarter. Mexico's GDP dramatically dropped to 0.0% in the
third quarter of 2001 from a GDP growth of 7.0% of the third quarter 2000.
The company's largest market, the Mexican export sector, including
maquiladoras, decreased its activity by around 35% year over year, and
its domestic customers' activity declined by approximately 10%, which
resulted in an expensive market-related downtime to match demand. As a
result, the company's overall operating rate fell to a very modest 73% in
the third quarter of 2001 from 85% in the third quarter 2000.
The Company's total shipments decreased 15% quarter over quarter and
11% when discount the volume corresponding to assets was divested.
Shipments (000 S/T) 3Q01 3Q00 Change %
Paper Shipments 230 231 -1 Flat
Packaging Shipments 155 197 -42 -21%
Wood Products 11 40 -29 -73%*
Total Shipments 396 468 -72 -15%
(-) Asset Divestures - 21 -21 -
Proforma Shipments 396 447 -51 -11%
* The largest wood product plant has been idle since January 2001,
and it will start up in January 2002 following a modernization
program in line with our status as the industry's lowest cost.
Pricing
In a dramatic business environment, industry prices suffered and
dropped an average of 10.5%, and in Durango they fell 8% quarter over
quarter.
Mix Price ($US/Ton) 3Q01 3Q00 %
GID 574 573 Flat
Pipsamex 623 697 -11%
DPC 694 794 -13%
Total 605 658 -8%
Net Sales
Total net sales decreased 22% to US$239.4 million for the third quarter of
2001 from US$308.0 million for the third quarter of 2000, and 15% in the
same period when discounting sales of divested assets. Sales were
affected by 15% lower shipments and 8% lower prices.
Net Sales ($US million) 3Q01 3Q00 %
GID 131.5 159.2 -17%
Pipsamex 62.3 83.0 -25%
DPC 50.0 81.0 -38%
Eliminations (4.4) (15.2) -
Total Sales 239.4 308.0 -22%
(-) Sales of Divestures - 25.8 -
Proforma Sales 239.4 282.2 -15%
Net sales from the paper segment decreased 12% to US$132.5 million for
the third quarter of 2001 from US$151.0 million for the third quarter of
2000. The paper shipments remained flat to 230 thousand short tons for
the third quarter of 2001 from 231 thousand short tons for the third
quarter of 2000. The average paper unitary price decreased 12%.
Net sales from the packaging segment decreased 13% on a proforma
basis when discounting sales by US$25.8 million from the divested
assets. Also, due to this effect, our net sales decreased 29% to US$101.4
million for the third quarter of 2001 from US$142.2 million for the third
quarter of 2000. This decrease was due to a 21% decrease in shipments
to 155 thousand short tons for the third quarter of 2001 from 197
thousand short tons for the third quarter of 2000. The packaging average
unitary price decreased 9%, affected mainly by the reduction in sales
from the converting assets, where the proforma prices practically remain
flat.
Cost of Sales
The unitary cost of sales decreased 8% to US$493 for the third quarter of
2001 from US$ 535 for the third quarter of 2000. Cost of sales decreased
22% to US$195.3 million for the third quarter of 2001 from US$250.4
million for the third quarter of 2000. This decrease was primarily due to a
15% decrease in shipments and 8% decrease of the mentioned unitary
cost of sales.
Recycled fiber (OCC and ONP) decreased 28% in real terms to US$99 per
short tons from US$138 per short tons, which accounts for 28% of our
total raw material cost. Energy and labor costs increased by 7%, which
accounts for approximately 30% of the cost of goods sold.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased 13% to US$16.2
million for the third quarter of 2001 from US$18.6 million for the third
quarter of 2000, essentially due to a cost reduction policy.
EBITDA
In order to be consistent with our Senior Notes Indenture as of this
quarter, the term EBITDA is defined as Consolidated Net Income plus
consolidated interest expense, income and assets taxes, depreciation
and amortization expenses and all other non-cash items reducing
Consolidated Net Income, less all non-cash items increasing
Consolidated Net Income; or alternatively, EBITDA is equal to: operating
income plus depreciation and amortization plus interest income plus
other cash income less other cash expenses. All previous or subsequent
references must be calculated according to either definition.
EBITDA decreased 17% to US$46.5 million for the third quarter of 2001
from US$55.8 million for the third quarter of 2000. The most significant
effect was due to a decrease of 15% of shipments during the period. Such
effect was mitigated by our low cost production. EBITDA as a percentage
of net sales was 19% for the third quarter of 2001 compared to 18% for
the same period in 2000.
EBITDA ($US million) 3Q01 Margin 3Q00 Margin
GID 36.0 27% 40.7 26%
Pipsamex 7.0 11% 8.2 10%
DPC 3.8 8% 7.0 9%
Eliminations (0.3) - (0.1) -
Total 46.5 19% 55.8 18%
Financing Cost
Financing cost was an expense of US$49.7million for the third quarter of
2001 compared to an income of US$24.4 million for the same period in
2000. This expense can be broken down as follows:
(1) Interest expense increased 1% to US$25.8 million for the third
quarter of 2001 from US$25.5 million for the third quarter of 2000.
(2) Interest income decreased 53% to US$1.3 million for the third
quarter of 2001 from US$2.9 million for the third quarter of 2000.
(3) Foreign exchange results were reported as a loss of US$33.4
million for the third quarter 2001 as compared to a gain of
US$27.8 million for the third quarter 2000. This foreign exchange
difference resulted from a higher depreciation of the Peso (to 9.51
from 9.07) in the third quarter of 2001 when compared to an
appreciation of the Peso (to 9.45 from 9.82) in the third quarter of
2000.
(4) Gain from monetary position decreased by 58% to US$8.1 million
for the third quarter of 2001 from US$19.3 million for the third
quarter of 2000. This decrease reflected a lower inflation rate.
Provisions for Employee Profit Sharing and Income
and Asset Taxes Net of Tax Loss Carry Forwards
Provisions for employee profit sharing and income and asset taxes net of
tax loss carry forwards decreased 61% to US$4.8 million for the third
quarter of 2001 from US$12.3million for the third quarter of 2000. This
was primarily due to a decrease in the Company's taxable income.
Net Income
Net loss was US45.5 million for the third quarter of 2001 compared with a
net income of US$81.9 million for the third quarter of 2000. Such loss was
derived from a lower EBIT and a higher depreciation of the Peso in the
period, which generated a higher exchange rate loss. In addition an
extraordinary expense related to severance costs for the Atenquique mill
and the Chihuahua plywood plant impacted results by US$18.6 million. In
addition a US$14.7 million loss in the Durango-Georgia asset sale
affected the results, accounted for under non-cash items.
Liquidity and Capital Resources
Sources and Uses of Cash:
As of September 30, 2001, the Company had cash and cash equivalents
of US$37.9 million. Net resources generated from income were US$40.7
million in 2001. Accounts receivable decreased US$23.0 million, a
decrease in inventory of US$64.7 million and a decrease in accounts
payable of US$82.6 million. Accounting resources generated by operating
activities were US$43.6 million after paying taxes, financial costs and
accounting for changes in net working capital.
CAPEX
The amount of CAPEX for the first nine months of 2001 was US$36.9
million, from which our suppliers provided financing of US$5 million. In
this period we registered a write down of US$14.7 million due to the
converting asset sale.
Cash CAPEX ($US million) 9M 2001 FY 2001e
GID 16.0 21.0
Pipsamex 8.1 9.0
DPC 7.8 8.0
Total 31.9 38.0
Debt Maturity Profile
As of September 30, 2001 our debt was US$790.7 million as follows:
<table>
<caption>
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 TOTAL
<s> <c> <c> <c> <c> <c> <c> <c> <c> <c> <c>
- -US$- 15.2 *82.3 194.1 96.2 31.4 317.9 21.3 24.0 7.9 790.7
Million
</table>
* US$46 million of bank loans have a roll-over clause.
Of the total Company's indebtedness, 60% is subject at a fixed interest
rate and the remaining 40% is subject to a variable interest rate. As of
today debt-weighted average cost is 10.7%.
Merger GIDUSA CODUSA
Summary
On October 8, 2001 the GIDUSA Shareholders meeting approved the
merger of Corporacion Durango with and into Grupo Industrial Durango,
the surviving entity. Pipsa-Mex and DPC become fully-owned
subsidiaries of GIDUSA. For all financial, tax and accounting effects
since October 8 the merger is considered completed. Moreover Grupo
Industrial Durango will be renamed "Corporacion Durango".
Transaction Rationale
GIDUSA concentrates majority of debt at holding company level,
with 21% at the Subsidiary level.
Pipsa-Mex's NOLs would be incorporated into GID's tax
consolidation.
Provides higher financial flexibility to the Company.
Financial, operational, and administrative simplification.
GIDUSA becomes a larger NAFTA company.
As a larger public entity, the company gains greater critical mass.
Merger Terms
The valuation of the two entities was based in a 5.1x estimated EBITDA of
each company, which represented for GIDUSA 57% and for CODUSA 43%
of the merger. After such transaction the majority shareholders owns
93% of the company. The outstanding number of shares after the merger is
94,072,122.
First Nine Months Summary
Paper shipments decreased 11% to 667 thousand short tons for the first
nine months of 2001 from 752 thousand short tons for the first nine
months of 2000. Packaging shipments decreased 12% to 505 thousand
short tons for the first nine months of 2001 from 577 thousand short tons
for the first nine months of 2000. Total shipments decreased 16% to 1'212
thousand short tons for the first nine months of 2001 from 1'449
thousand short tons for the first nine months of 2000. Net sales
decreased 14% to US$ 773.7 million for the first nine months of 2001 from
US$899.2 million for the first nine months of 2000. Operating income
decreased 18% to US$87.4 million for the first nine months of 2001 from
US$106.0 million for the first nine months of 2000. EBITDA decreased
12% to US$138.0 million for the first nine months of 2001 from US$157.4
million for the first nine months of 2000. Net income decreased to US$
38.4 million for the first nine months of 2001 from US$146.0 million for the
first nine months of 2000.
CEO's Statement
"During the first nine months of the year, the economies of Mexico and
the U.S. experienced negative growth. Despite this, CODUSA's EBITDA
only declined by 17%. However our effective plan to maintain our low
costs allows us to increase our EBITDA margin to 19%. During the next
months the industry will continue experiencing weak demand and price
pressure. We are one of the few Mexican companies that refinanced its
debt before the tragic events of September 11, successfully concluding
Corporacion Durango's exchange offer. We are confident about full year
2001, due to our successfully concluded refinancing program, our
investment program in our plants, and thus, our cash flow should
improve going forward" said Miguel Rincon CEO.
Corporacion Durango Highlights
Concept 3Q/01 3Q/00 2Q/01 9M/01 9M/00
Total Shipments ('000 S/T) 396 468 389 1'212 1'449
Net Sales ($Million) 239.4 308.0 261.8 773.7 899.2
Operating Income ($Million) 27.8 39.4 30.4 87.4 106.0
EBITDA ($Million) 46.5 55.8 46.4 138.0 157.4
EBITDA Margin 19% 18% 18% 18% 18%
Net Income ($Million) (45.5) 81.9 44.1 38.4 146.0
Interest Coverage Ratio(1) 2.0x 2.2x 1.8x 1.8x 2.2x
(1) Interest Coverage Ratio means the ration of Consolidated EBITDA
to Consolidated Interest Expense.
(1a) Consolidated EBITDA means Consolidated Net Income plus
consolidated interest expense, income and assets taxes,
depreciation and amortization expenses and all other non-cash
items reducing Consolidated Net Income, less all non-cash
items increasing Consolidated Net Income; or EBITDA is
equal to: operating income plus depreciation and amortization
plus interest income plus other income less other expenses.
All previous or subsequentreferences must be calculated
according either definition.
(1b) Consolidated Interest Expense is the amount of interest
respect of indebtedness excluding any premium, fees and
expenses and any amortization thereof in connection with
the indebtedness.
Contacts
Corporacion Durango, S.A. de C.V.
Mayela R. Velasco
+52 (1) 829 1008
mrinconv@corpdgo.com.mx
Arturo Diaz Medina
+52 (1) 829 1015
adiaz@corpdgo.com.mx
Thomson Financial / Carson
Alex Cancio
(212) 701 1973
alex.cancio@tfn.com
Richard Huber
(212) 701-1830
richard.huber@tfn.com
<table>
<caption>
CORPORACION DURANGO, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
AS OF DECEMBER 31, 2000 AND SEPTEMBER 30, 2001 (UNAUDITED)
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS
AS OF SEPTEMBER 30, 2001
(Stated in thousands of Pesos and Dollars)
US$ DLLS.
December 31, September 30, September 30,
2000 2001 2001
(Audited) (Unaudited) (Unaudited)
ASSETS
<s> <c> <c> <c>
CURRENT ASSETS:
Cash and cash equivalents ...........................$ 749,654 $ 360,372 37,895
Accounts receivable, net ............................ 2,069,349 1,831,288 192,569
Affiliated companies ................................ 7,003 44,102 4,638
Taxes recoverable and other assets .................. 41,062 25,829 2,716
Inventories, net .................................... 2,271,197 1,655,585 174,093
Prepaids ............................................ 12,703 11,798 1,241
Total current assets ...................... 5,150,968 3,928,974 413,150
PROPERTY, PLANT AND EQUIPMENT, net .......................... 16,269,960 15,522,360 1,632,249
OTHER ASSETS, net ........................................... 513,686 624,540 65,673
Total assets .............................$ 21,934,614 $ 20,075,874 2,111,072
<caption>
LIABILITIES AND STOCKHOLDERS' EQUITY
<s> <c> <c> <c>
CURRENT LIABILITIES:
Bank loans and current portion of long-term debt .... 796,134 147,937 15,556
Interest payable .................................... 358,603 196,852 20,700
Trade accounts payable .............................. 1,549,711 1,091,214 114,746
Notes payable ....................................... 27,101 37,051 3,896
Affiliated companies ................................ 17 31 3
Accrued liabilities and other payables............... 607,204 435,731 45,819
Employee profit-sharing ............................. 7,488 4,047 426
Total current liabilities ................ 3,346,258 1,912,863 201,147
LONG-TERM DEBT .............................................. 7,066,903 7,371,829 775,182
NOTES PAYABLE ............................................... 45,407 98,874 10,397
OTHER LIABILITIES ........................................... 60,413 14,967 1,574
DEFERRED TAXES............................................... 3,100,101 3,156,373 331,907
LIABILITY FOR EMPLOYEE BENEFITS.............................. 225,610 234,480 24,657
DEFERRED CREDITS............................................. 508,932 108,680 11,428
Total long term liabilities ............... 11,007,366 10,985,203 1,155,146
Total liabilities ........................ 14,353,624 12,898,066 1,356,292
STOCKHOLDERS' EQUITY:
Majority interest ................................... 6,143,163 5,893,397 619,718
Minority interest ................................... 1,437,827 1,284,411 135,062
Total stockholders' equity ................ 7,580,990 7,177,808 754,780
Total liabilities and stockholders' equity $ 21,934,614 $ 20,075,874 2,111,072
<FN>
<F1>
Exchange rate: $ 9.5098 per Dollar
</FN>
</table>
<table>
<caption>
"CORPORACION DURANGO, S.A. DE C.V. AND SUBSIDIARIES"
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN FINANCIAL POSITION
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS
"AS OF SEPTEMBER 30, 2001"
(Stated in thousands of Pesos and Dollars)
*
Full Year Acum.Sep Acum.Sep
2000 2001 US$ 2001
(Audited) (Unaudited)
<s> <c> <c> <c>
OPERATING ACTIVITIES:
Net income (loss) .......................................... $ 1,647,120 $ 363,401 38,213
Add (deduct)- Charges (credits) to income which do
not require (provide) cash-
Depreciation and amortization ....................... 522,608 333,014 35,018
Provision for employee benefits ..................... 30,233 16,580 1,743
Amortization of negative goodwill ................... (1,357,273) (446,030) (46,902)
Amortization of Financial Comissions ................ 24,563 47,161 4,959
Provision for deferred taxes ........................ 355,434 43,942 4,621
Other................................................ 36,740 28,986 3,048
Total items which do not require cash................ (387,695) 23,653 2,487
Net resources generated from income ................ 1,259,425 387,054 40,701
Changes in operating assets and liabilities:
Decrease (Increase) in inventories ............... (62,530) 615,612 64,734
Decrease (Increase) in current assets ............ (12,290) (20,961) (2,204)
Decrease (increase) in account receivables, net .. 171,385 218,544 22,981
(Decrease) increase in other accounts payable and
accrued expenses ............................... (45,796) (785,198) (82,567)
Resources generated by operating activities ........ 1,310,194 415,051 43,645
FINANCING ACTIVITIES:
Bank loans .......................................... (267,951) (409,895) (43,102)
Increase in capital ................................. 2,021,462 0 0
Additional paid in capital .......................... 0 0 0
Net resources generated from financing activities .. 1,753,511 (409,895) (43,102)
INVESTMENT ACTIVITIES:
Additions to property, plant and equipment........... (1,030,475) (210,933) (22,181)
Acquisition of new subsidiaries ..................... (2,021,462) 0 0
Increase in deferred assets ......................... (116,012) (183,505) (19,296)
Minority interest .................................... 0 0 0
Net resources applied to investing activities ....... (3,167,949) (394,438) (41,477)
INCREASE IN CASH AND CASH EQUIVALENTS ....................... (104,244) (389,282) (40,935)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD......... 853,898 749,654 78,830
CASH & CASH EQUIVALENTS AT END OF THE PERIOD ................$ 749,654 $ 360,372 US$ 37,895
<FN>
<F1>
* The exchange rate of 9.5098 was used for translation purposes.
</FN>
</Table>
<table>
<caption>
"CORPORACION DURANGO, S.A. DE C.V. AND SUBSIDIARIES"
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS
"AS OF SEPTEMBER 30, 2001"
Thousands of Pesos Thousands of Dollars
3Q 3Q 3Q 3Q
2000 2001 Var 2000 2001 Var
(Audited) (Unaudited) (Audited) (Unaudited)
<s> <c> <c> <c> <c> <c> <c>
NET SALES ................................................ $ 3,052,770 $ 2,276,251 -25% 308,029 239,358 -22%
COST OF SALES ............................................ 2,478,819 1,857,246 -25% 250,431 195,299 -22%
Gross profit......................................... 573,951 419,005 -27% 57,598 44,059 -24%
Selling and Administrative expenses ................. 184,549 154,286 -16% 18,561 16,224 -13%
Operating income .................................... 389,402 264,719 -32% 39,037 27,835 -29%
FINANCIAL EXPENSE:
Interest expense ......................................... 254,925 245,086 -4% 25,525 25,772 1%
Interest income .......................................... (28,741) (12,820) -55% (2,881) (1,347) -53%
Exchange (gain) loss, net ................................ (278,235) 317,789 N/A (27,754) 33,417 N/A
Gain on monetary position ................................ (192,760) (77,152) -60% (19,331) (8,113) -58%
Total financial expense .......................... (244,811) 472,903 N/A (24,441) 49,729 N/A
OTHER INCOME (EXPENSES):
Other income (expense), net .............................. 248,599 41,702 -83% 25,615 4,386 -83%
Total other income (expense) ..................... 248,599 41,702 -83% 25,615 4,386 -83%
Income (loss) before income and asset taxes ...... 882,812 (166,482) N/A 89,093 (17,508) N/A
Provisions for income and asset taxes .................... 123,304 45,441 -63% 12,317 4,779 -61%
Provision for deferred income taxes ...................... (51,373) (96,469) 88% (5,110) (10,144) 99%
Net income after taxes ........................... 810,881 (115,454) N/A 81,886 (12,143) N/A
Special items ............................................ 0 317,204 N/A 0 33,356 N/A
NET INCOME................................................ $ 810,881 $ (432,658) N/A 81,886 (45,499) N/A
MAJORITY................................................ 614,922 (321,413) N/A 62,207 (33,800) N/A
MINORITY................................................ 195,959 (111,245) N/A 19,679 (11,699) N/A
$ 810,881 $ (432,658) N/A 81,886 (45,499) N/A
</table>
<table>
<caption>
"CORPORACION DURANGO, S.A. DE C.V. AND SUBSIDIARIES"
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS
"AS OF SEPTEMBER 30, 2001"
Thousands of Pesos Thousands of Dollars
Ac Ac Ac Ac
2000 2001 Var 2000 2001 Var
(Audited) (Unaudited) (Audited) (Unaudited)
<s> <c> <c> <c> <c> <c> <c>
NET SALES ................................................ $ 8,979,009 $ 7,340,171 -18% 899,197 773,709 -14%
COST OF SALES ............................................ 7,354,672 6,033,053 -18% 738,899 635,744 -14%
Gross profit......................................... 1,624,337 1,307,118 -20% 160,298 137,965 -14%
Selling and Administrative expenses ................. 545,678 479,806 -12% 54,253 50,590 -7%
Operating income .................................... 1,078,659 827,312 -23% 106,045 87,375 -18%
FINANCIAL EXPENSE:
Interest expense ......................................... 754,065 767,375 2% 74,407 80,984 9%
Interest income .......................................... (87,977) (54,709) -38% (8,751) (5,792) -34%
Exchange (gain) loss, net ................................ (26,562) (55,220) 108% (4,637) (6,849) 48%
Gain on monetary position ................................ (515,066) (233,948) -55% (50,631) (24,645) -51%
Total financial expense .......................... 124,460 423,498 240% 10,388 43,698 321%
OTHER INCOME (EXPENSES):
Other income (expense), net .............................. 1,073,587 528,964 -51% 111,242 55,592 -50%
Total other income (expense) ..................... 1,073,587 528,964 -51% 111,242 55,592 -50%
Income (loss) before income and asset taxes ...... 2,027,786 932,778 -54% 206,899 99,269 -52%
Provisions for income and asset taxes .................... 253,851 208,231 -18% 25,121 22,119 -12%
Provision for deferred income taxes ...................... 378,282 43,942 -88% 35,745 5,407 85%
Net income after taxes ........................... 1,395,653 680,605 -51% 146,033 71,743 51%
Special items ............................................ 0 317,204 N/A 0 33,356 N/A
NET INCOME................................................ $ 1,395,653 $ 363,401 -74% 146,033 38,387 -74%
MAJORITY................................................. 1,234,671 288,238 -77% 130,508 30,118 -77%
MINORITY................................................. 160,982 75,163 -53% 15,525 8,269 -47%
$ 1,395,653 $ 363,401 -74% 146,033 38,387 -74%
</table>
<table>
<caption>
"CORPORACION DURANGO, S.A. DE C.V. AND SUBSIDIARIES"
BASES FOR CALCULATION FOR EBITDA AND COVERAGE
EXPRESSED IN TERMS OF THE PURCHASING POWER OF MEXICAN PESOS
"AS OF SEPTEMBER 30, 2001"
(Stated in thousands of Dollars)
Thousands of Dollars Thousands of Dollars
3Q 3Q Ac Ac
2000 2001 Var 2000 2001 Var
(Audited) (Unaudited) (Audited) (Unaudited)
<s> <c> <c> <c> <c> <c> <c>
Operating income ..........................................$ 39,037 $ 27,835 -29% $ 106,045 $ 87,375 -18%
Depreciation, amortization and other virtuals ............. 13,012 12,937 -1% 40,921 38,915 -5%
Interest income ........................................... 2,881 1,347 -53% 8,751 5,792 -34%
Other income (expense), net ............................... 873 4,386 402% 1,695 5,961 252%
EBITDA..................................................... 55,803 46,505 -17% 157,412 138,043 -12%
Interest expense .......................................... 25,525 25,772 1% 74,407 80,984 9%
Amortization of Financial Comissions ...................... 544 2,348 332% 1,588 4,959 212%
Consolidated interest expense ............................. 24,981 23,424 -6% 72,819 76,025 4%
Coverage (EBITDA/consolidated interest expense)............ 2.2 2.0 2.2 1.8
</table>
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: October 31, 2001 By /s/ Mayela Rincon de Velasco
Durango, Mexico --------------------------------
Name: Mayela Rincon de Velasco
Title: Chief Financial Officer