Boeing names new CEO as it posts a loss of more than $1.4 billion in second quarter
Boeing lost more than $1.4 billion in the second quarter and said a longtime industry executive will take over as chief executive of the troubled aircraft manufacturer next week.
Robert “Kelly” Ortberg, 64, a former CEO at aerospace supplier Rockwell Collins, will succeed David Calhoun as CEO, the company said.
Shares rose more than 2% before the opening bell Wednesday.
Boeing’s loss was wider and revenue lower than Wall Street expected. Revenue fell 15% from a year earlier, and both its commercial-airplanes business and defense unit lost money.
The disappointing results come at a tumultuous time for Boeing. The company agreed to plead guilty to fraud in connection with the Max, two of which crashed, killing 346 people. The Federal Aviation Administration has increased its oversight of the company following mistakes including the blowout of a panel on an Alaska Airlines jet. It is pushing back against whistleblower allegations of manufacturing shortcuts that crimp on safety.
The company is dealing with supply-chain problems that are hindering production, which it hopes to fix in part by re-acquiring Spirit AeroSystems, a key contractor. It is still trying to persuade regulators to approve two new models of the Max and a bigger version of its two-aisle 777 jetliner. And it faces a multi-billion-dollar decision on when to design a new single-aisle plane to replace the Max.
Ortberg will become CEO and president on Aug. 8, Boeing said. He emerged as a leading candidate only recently. Others who were reportedly considered for the job included Patrick Shanahan, a former Boeing executive and now CEO of its most important supplier, Spirit AeroSystems, and another longtime Boeing executive, Stephanie Pope, who recently took over the commercial-airplanes division.
Chairman Steven Mollenkopf said Ortberg was chosen after “a thorough and extensive search process” and “has the right skills and experience to lead Boeing in its next chapter.”
Mollenkopf said Ortberg has earned a reputation for running complex engineering and manufacturing companies.
