Key Takeaways
- Boeing shares rose Wednesday as the hiring of a new chief executive offset worse-than-expected second-quarter results.
- Former Rockwell Collins CEO Kelly Ortberg will replace Dave Calhoun starting next week, Boeing said Wednesday.
- The troubled plane maker reported lower Q2 revenue and a larger loss than expected.
Boeing (BA) shares rose Wednesday as the announcement of a new chief executive outweighed second quarter results that came in below expectations.
The airplane maker said that its next CEO will be Kelly Ortberg, a former engineer and CEO of Rockwell Collins, an aerospace manufacturer that now operates as a subsidiary of RTX (RTX) called Collins Aerospace.
Ortberg will take over for outgoing CEO Dave Calhoun starting Aug. 8. Boeing announced in March that Calhoun would leave the position at the end of the year.
CEO Enthusiasm Outweighs Massive Q2 Loss
Boeing’s second-quarter results came in worse than analysts expected as it looks to move past a troubled first half of the year that included safety incidents, tense Congressional testimony, investigations from regulators and law enforcement, and a guilty plea for defrauding the federal government.
Boeing reported $16.87 billion in Q2 revenue, down 15% year-over-year and below the $17.36 billion analysts had expected, according to consensus estimates compiled by Visible Alpha. The company reported a substantially larger net loss than expected at $1.44 billion, nearly 10 times as large as the $149 million loss last year, while analysts had estimated an $831 million loss.
“While we have more work ahead, the steps we’re taking will help stabilize our operations and ensure Boeing is the company the world needs it to be,” Calhoun said. “We are making important progress in our recovery and will continue to build trust through action and transparency.”
Boeing shares rose 2% to $190.95 soon after the opening bell Wednesday but are still down about 27% so far this year.