Covington Technologies Loss Doubles for Year

Covington Technologies reported a net loss of $6.65 million for 1985, nearly double the $3.65-million loss of the prior year. Revenues from continuing operations for the year dropped 27%, to $38 million from $52 million.

Spokesmen for the Fullerton builder of low-income housing were unavailable for comment late Monday, but in a prepared statement, Deyo P. Breen, the company’s chief financial officer, attributed the loss to “discontinued general contracting activities” and the establishment of a $3.8-million reserve to cover possible claims “that could be filed against the company” for government contracts that were not completed. Breen also said that the company is considering “offsetting claims” against the U.S. government and various subcontractors.

For the past two years, Covington has been phasing out an unprofitable, 4-year-old contracting division that has handled construction projects on military bases.