UPDATE - Boeing posts $1.4 billion loss in 2nd quarter, revenue falls 15%

ADDS APPOINTMENT OF NEW CEO

By Ovunc Kutlu

ISTANBUL (AA) - US-based global aerospace manufacturer Boeing saw a net loss of more than $1.4 billion in the second quarter, and an annual revenue decline of almost 15%, according to a financial results statement released Wednesday.

The defense contractor posted a net loss of nearly $1.44 billion in the April - June period, which is a steep decline from a $149 million loss in the same period last year.

Net loss from operations widened to almost $1.1 billion, from $99 million, during that period.

Total revenues came in at $16.86 billion in the second quarter -- a 14.6% decrease from $19.75 billion in the same quarter of 2023.

For the first half of this year, net loss totaled almost $1.8 billion, while net loss from operations amounted to approximately $1.18 billion.

Revenues for the January - June period stood at $33.43 billion, showing an 11.2% loss from $37.67 billion in the first half of 2023.

"Despite a challenging quarter, we are making substantial progress strengthening our quality management system and positioning our company for the future," said Dave Calhoun, Boeing president and CEO. "We are executing on our comprehensive safety and quality plan and have reached an agreement to acquire Spirit AeroSystems."

Boeing announced July 1 that it would acquire American commercial airplane manufacturer Spirit AeroSystems in an all-stock transaction at an equity value of approximately $4.7 billion, while the total transaction value is approximately $8.3 billion, including Spirit's last reported net debt.

Boeing announced separately Wednesday that its board elected a new chief executive officer (CEO).

Robert K. "Kelly" Ortberg was elected the company's new president and CEO, effective Aug. 8. He will also serve on the board of directors.

Ortberg will succeed Dave Calhoun, who announced earlier this year his intention to retire from the company, after serving as president and CEO since January 2020. He has been a member of the board since 2009.

"The Board conducted a thorough and extensive search process over the last several months to select the next CEO of Boeing and Kelly has the right skills and experience to lead Boeing in its next chapter," Steven Mollenkopf, board chair, said in a statement. "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.”

"The Board would also like to thank Dave Calhoun for his strong leadership at Boeing, first as Chair and then as CEO, when he stepped in to steer the company through the challenges of recent years," added Mollenkopf.

Ortberg, 64, began his career in 1983 as an engineer at Texas Instruments, and then joined Rockwell Collins in 1987 as a program manager, as he steered the company's integration with United Technologies and RTX until he retired from RTX in 2021. He is a former chair of the Aerospace Industries Association Board of Governors, according to the statement.