If you own Boeing shares, you probably cringe every time their name pops up in the news. It’s like seeing a cloud of smoke – you just know there’s a fire somewhere.

This morning, Boeing dropped another bombshell that might just lead them to some light at the end of the tunnel. They’ve appointed Robert “Kelly” Ortberg, the ex-CEO of Rockwell Collins, as their new CEO. 

This leadership shake-up comes right after Boeing announced a jaw-dropping $1.4 billion operating loss for the second quarter. That’s more than three times last year’s loss. The current CEO, Dave Calhoun, who got exposed by Congress for bumping his salary by 45% to a cozy $32 million, decided to bow out, but I’m sure he’ll be just fine.

(Source: Axios)

Ortberg, with his mechanical engineering background, is all pumped up about joining Boeing. He’s got some solid experience under his belt from Rockwell Collins and Texas Instruments, but let’s be real – he’s stepping into a hornet’s nest armed with a fly swatter. Boeing has been slammed for caring more about their balance sheets than their blueprints, so Ortberg’s engineering chops might be just what the doctor ordered. Then again, the last CEO, Dennis Muilenburg, was also an engineer, and look how well that worked out with the 737 Max crashes.

Ortberg’s new role is no cakewalk. Boeing hasn’t seen a profit since 2019. The two tragic 737 Max crashes, which claimed 346 lives, were caused by a design flaw and cost Boeing over $20 billion. To make matters worse, Boeing recently admitted to defrauding the FAA and agreed to operate under the watchful eye of a court-appointed monitor.

In January, a 737 Max’s door plug blew off after takeoff, adding another layer of "uh-oh" to Boeing’s list of woes. Whistleblowers have been spilling secrets to Congress about Boeing’s shady practices, like using bargain-bin parts and retaliating against employees who dared to speak up about safety concerns.

And it’s not just the 737 Max that’s giving Boeing a headache. Their defense division reported losses nearly double from the previous year, reaching a staggering $913 million. The Starliner spacecraft, which finally made it to the International Space Station, had issues that left astronauts stuck there, turning their space mission into an unplanned extended stay. On top of that, Boeing is more than $2 billion in the hole on their new Air Force One project.

Despite all this, Boeing’s stock got a little love with the news of Ortberg’s appointment, though it’s still down 24% for the year. Ortberg’s mission, should he choose to accept it, is nothing short of monumental: steer Boeing back to profitability and regain trust.

Calhoun, the outgoing CEO, mentioned they’re making good progress on quality management and have a deal to buy Spirit AeroSystems. Yet, Boeing’s legal troubles aren’t over. The plea deal regarding the 737 Max crashes has victims' families arguing that Boeing got off too easy, and they’re still fighting in court.

Stock.News does not have positions in companies mentioned.