Boeing names new CEO as it reports hefty loss

VIRGINIA

Boeing named former Rockwell Collins chief Robert "Kelly" Ortberg its next CEO Wednesday, as the aviation giant reported a hefty loss on continued operational problems.

Ortberg, 64, helped lead Rockwell Collins and integrate it into United Technology prior to his retirement from RTX in 2021.

His appointment comes as Boeing attempts to rebound from a series of safety and quality control problems that have sharpened scrutiny on the company.

Ortberg "is an experienced leader who is deeply respected in the aerospace industry," said Boeing chairman Steve Mollenkopf in a message to employees.

Ortberg is set to become CEO on August 8, taking over for Dave Calhoun, a former General Electric and private equity executive who has held the post since early 2020.

"We look forward to working with Kelly as he leads Boeing through this consequential period in our long history," Mollenkopf said.

Boeing on Wednesday reported a second-quarter loss of $1.4 billion, compared with a loss of $149 million in the year-ago period.

Revenues fell 14.6 percent to $16.9 billion.

The quarterly results reflected a continued drag from Boeing's commercial division, where it has lowered production while addressing safety and quality control issues under the close watch of regulators.

Boeing has been in the hot seat since a January incident in which a 737 MAX operated by Alaska Airlines made an emergency landing after a fuselage panel blew out mid-flight.

Boeing's latest results also showed significant weakness in its defense business due to a number of fixed price contracts where it has experienced deep losses due to supply chain problems, as well as higher engineering costs and technical issues.

Boeing's press release listed four defense contracts behind an operating loss of $913 million in the quarter.

"While we have more work ahead, the steps we're taking will help stabilize our operations," Calhoun said. "We are making important progress in our recovery and will continue to build trust through action and transparency."

Shares of Boeing rose 1.7 percent in pre-market trading.