Covington Replaces Its President With Firm’s Founder
The board of Fullerton’s Covington Development Group Inc. said Tuesday that it had removed Deyo P. Breen from the president’s post because of “differences in operating philosophy.”
The board--in a terse statement--said it had replaced Breen, 43, with 59-year-old company founder Loran D. Covington, who is also chairman and chief executive of the home-building company.
Neither man could be reached for comment Tuesday.
Breen had been president of the publicly held company, formerly called Covington Technologies, since July, 1987. He remains a director of the company.
The company has had a long--and sometimes troubled--history since its founding in 1962.
A division that makes polystyrene wall material, which Covington once hoped would revolutionize the industry, was sold for $400,000 late last year after the material failed to sell well.
A medium-size home builder ranked as the 215th largest in Southern California--it built 572 units last year, Covington was seldom profitable on a yearly basis in this decade. Breen began paring expenses and employees at the company’s headquarters when he was appointed to the president’s job.
But profits were flat last year. Covington in November reported earnings of $257,000 for the first 9 months of 1988, down 8% from 1987’s earnings of $278,000. Revenue dropped 3%, to $53.3 million from $55.1 million.
Breen earned $168,735 as president during 1987, according to the company’s 1988 proxy sent to shareholders.