Boeing has announced the appointment of Kelly Ortberg as its new President and CEO, succeeding Dave Calhoun. Ortberg, the former CEO of Rockwell Collins, will officially assume his new role on August 8 and has also been named to the Boeing board.
The aerospace giant reported a wider-than-expected second-quarter loss and revenue miss, with a core operating loss of $1.392 billion. Additionally, Boeing’s free cash flow burn reached $4.3 billion in the second quarter, totaling an astounding $8.256 billion in negative free cash flow for the first half of the year.
Boeing’s commercial deliveries were also impacted in the second quarter, with a 32% drop in the number of jets delivered compared to the previous year. The company confirmed its intention to reach a monthly production target of 38 737 MAX jets by the end of the year.
Despite the challenges faced, outgoing CEO Dave Calhoun expressed optimism about Boeing’s future, highlighting the company’s progress in strengthening its quality management system and its agreement to acquire Spirit AeroSystems. However, Boeing pleaded guilty to a criminal fraud conspiracy charge last week and agreed to pay at least $243.6 million for breaching a consent decree with the Department of Justice.
Families of the victims of the 737 MAX crashes are challenging Boeing’s plea deal, indicating that the company still faces legal jeopardy. Overall, Boeing continues to navigate through a turbulent period as it works towards stabilizing its operations and rebuilding trust in the industry.