Boeing names new CEO as it posts a loss of more than US$1.4 billion in second quarter

Boeing lost more than US$1.4 billion in the second quarter and said a longtime industry executive will take over as chief executive of the troubled aircraft manufacturer next week.

Robert “Kelly” Ortberg, 64, a former CEO at Rockwell Collins, will succeed Dave Calhoun as CEO, the company said.

Boeing’s loss was wider and revenue lower than Wall Street expected. Revenue fell 15 per cent from a year earlier, and both its commercial-airplanes business and defense unit lost money.

The disappointing results come at a tumultuous time for Boeing. The company agreed to plead guilty to fraud in connection with the Max, two of which crashed, killing 346 people. The Federal Aviation Administration has increased its oversight of the company following mistakes including the blowout of a panel on an Alaska Airlines jet. It is pushing back against whistleblower allegations of manufacturing shortcuts that skimp on safety.

The company is dealing with supply-chain problems that are hindering production, which it hopes to fix in part by re-acquiring Spirit AeroSystems, a key contractor. It is still trying to persuade regulators to approve two new models of the Max and a bigger version of its two-aisle 777 jetliner. And it faces a multi-billion-dollar decision on when to design a new single-aisle plane to replace the Max.

Shares rose more than three per cent before the opening bell Wednesday.