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Boeing has reported a second-quarter loss of more than $1.4bn as it announced a new CEO in a bid to turn around its struggling finances.
The embattled aerospace company has faced a tumultuous seven months after being embroiled in a string of safety concerns surrounding its aircraft.
In a bid to repair the company’s finances and reputation, Boeing has brought in Kelly Ortberg, 64, the former chief executive of supplier Rockwell Collins, whose position is expected to become effective on August 8.
Ortberg “has the right skills and experience to lead Boeing in its next chapter,” chairman Steven Mollenkopf said in a statement.
The new hire comes following the resignation of former CEO David Calhoun in March in what has been a tumultuous year for Boeing, with operating losses tripling in a year.
It’s revenues were also lower than Wall Street analysts anticipated, down 15 per cent for three months ended June 30 compared with a year earlier.
Calhoun noted that Boeing had a “challenging quarter,” he said in an earnings release, but added the business is making “substantial progress” as it plan for the future.
“I’m extremely honored and humbled to join this iconic company,” Ortberg said in a statement from the company on Wednesday.
“Boeing has a tremendous and rich history as a leader and pioneer in our industry, and I’m committed to working together with the more than 170,000 dedicated employees of the company to continue that tradition, with safety and quality at the forefront.”
Boeing’s core operating loss has tripled from a year ago, as the concerns surrounding the safety of its planes have kept the embattled company from being profitable.
The safety concerns were thrust into the limelight in January following a dramatic mid-air blowout.
Alaska Airlines flight 1282 was forced to make an emergency landing in Portland, Oregon after a doorplug – a panel of the fuselage near the rear of the aircraft – blew out as the plane reached 16,000 feet.
Last Wednesday, Boeing accepted the Justice Department’s deal to plead guilty to one count of conspiracy to defraud the United States.
The charge is connecting to the company’s misleading of federal regulators into approving its 737 Max jetliner – which was involved in the deaths of 346 people in two fatal crashes in 2018 and 2019.
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