Covington Technologies Posts Earnings Turnaround

Bolstered by lower mortgage rates, overall improvement in the real estate market and tax loss carry-forwards, Covington Technologies Monday reported net earnings of $1.2 million for the second quarter, a turnaround from a year earlier, when the company had a net loss of $569,000. Included in the recent quarter’s results is a $539,000 tax benefit resulting from losses during 1984 and 1985.

Revenue during the three months increased 85%, to $21.3 million from $11.5 million. The 1986 revenue includes $762,000 from the sale in mid-June of an option that Covington held on some Orange County property, said Bob Shirley, a company spokesman.

For the six months ended June 30, the Fullerton builder reported net earnings of $2 million, in contrast with a net loss of $588,000 last year. The six-month results include $903,000 in carry-forwards. Revenue during the first half totaled $39.9 million, up 97%.