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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, which will take effect August 8, comes as Boeing attempts to rebound from a series of safety and quality control problems that have sharpened scrutiny on the company.
Those difficulties were immediately visible in Boeing's second-quarter results released Wednesday, a 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 upgrading safety and quality control practices under the close watch of regulators.
The 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.
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.
Current leader Dave Calhoun ascended to CEO in January 2020 unexpectedly following the ouster of predecessor Dennis Muilenburg amid fallout from the MAX crashes.
Calhoun appeared poised to stay CEO to 2028 until the January 2024 Alaska Airlines incident sparked outrage on Capitol Hill and concern among Boeing's airline customers, whose reported efforts to engage the board preceded Calhoun's announcement on March 25 that he would step down by the end of 2024.
Lewis Musonye
