Boeing reports $1.4m losses as embattled aerospace giant is rocked by safety scandals
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Boeing has tripled its losses within a year and 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 year 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.
Chairman Steven Mollenkopf said in a statement that Ortberg “has the right skills and experience to lead Boeing in its next chapter”.
The new hire comes following the resignation of former CEO David Calhoun in March in what has been a tumultuous year for Boeing.
The company’s loss was greater and its revenue – which was down 15 per cent for three months ended June 30 compared with a year earlier – lower than Wall Street analysts anticipated.
Calhoun noted that Boeing had a “challenging quarter,” he said in an earning’s 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 when following a dramatic mid-air blowout in January.
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.
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