Covington Group’s Profit Drops Sharply

Covington Development Group, a Fullerton-based real estate development company, reported that second-quarter net income plunged to $457,000 from $1.8 million for the same 1989 quarter. Revenue declined 10%, to $19.3 million from $21.4 million.

For the first half, net earnings dropped to $811,000 from the $3.4 million earned for the first six months last year. Revenue was down 27%, to $35.1 million from $48.2 million.

The company said last year’s higher revenues and earnings principally resulted from a high volume of land sales.

“We expect Covington’s performance for the second half of 1990 to be much stronger than the first two quarters,” said Loran D. Covington, chairman and president.

“Because of our current construction cycle, the majority of our homes are scheduled for completion and escrow closing during the third and fourth quarters.”