Boeing missed the mark on pretty much every analyst expectation in Q2 as it continues to struggle to recover from a series of devastating engineering failures.

Reporting its Q2 numbers this morning, Boeing revealed the company experienced a net loss of $1.4 billion - nearly 10 times the amount it lost in the second quarter of 2023. Revenues for the quarter slid by 15 percent compared to the same period last year ($16.9 billion compared to $19.8 billion), while operating losses skyrocketed elevenfold.

Boeing blamed the dismal quarter on lower commercial aircraft delivery and additional losses on "fixed-price defense development programs" including the troubled replacement for the presidential Air Force One jet and its stuck-in-space Starliner capsule.

"Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future," outgoing Boeing CEO and president Dave Caloun said of the tumultuous three months. "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."

Along with troubles related to its government programs, Boeing is struggling to reputationally recover from a door plug that flew out during a flight in January, causing the grounding of 737 Max aircraft around the world for inspections that led to the discovery of further issues.

The company also pleaded guilty earlier this month to criminal liability over a pair of 737 Max crashes in 2021 as multiple whistleblowers have come forward claiming the door plug blowout was indicative of years of Boeing prioritizing profits over quality or passenger safety.

New CEO sends shares up despite dismal earnings

Boeing had a ready-made distraction from its horrible quarter on deck with news also breaking this morning that the company had found Calhoun's replacement in former Collins Aerospace CEO Robert "Kelly" Ortberg, who will be taking up Calhoun's role and seat on the board on August 8.

"Kelly is an experienced leader who is deeply respected in the aerospace industry, with a well-earned reputation for building strong teams and running complex engineering and manufacturing companies," said Boeing board chair Steven Mollenkopf. "We look forward to working with him as he leads Boeing through this consequential period in its long history."

While Boeing failed to meet any analyst expectations for the quarter (aside from having slightly less negative cash flow than estimated), shares popped after the numbers were released, likely because Ortberg's appointment signals a priority shift for Boeing away from being led by businessmen and back toward prioritizing the leadership of engineers.

Unlike Calhoun, whose professional biography is that of a business leader, Ortberg holds a degree in mechanical engineering and began his career as an engineer at Texas Instruments before moving to Rockwell as a program manager in 1987.

Rockwell, its successor Collins Aerospace, and its parent firm RTX, are prominent Boeing suppliers.

Whether Ortberg will succeed at changing Boeing's course remains to be seen, but shareholders are clearly pleased at the prospect.

"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," Ortberg said of his new job. "There is much work to be done, and I'm looking forward to getting started." ®

https://www.theregister.com//2024/07/31/boeing_q2_2024/