Boeing Co (NYSE:BA, ETR:BCO) has named Kelly Ortberg as its new Chief Executive Officer, replacing outgoing CEO Dave Calhoun.
Ortberg, previously CEO of Rockwell Collins and a special advisor to United Technologies CEO Greg Hayes, brings a wealth of experience in both the Commercial Aerospace and Defense sectors.
Industry analysts have expressed optimism about Ortberg's appointment.
"We are encouraged by the selection of Kelly as CEO,” Jefferies analysts wrote, calling him a “very capable executive with a good understanding of operations, the Commercial Aerospace business, and the Defense business."
Ortberg's leadership at Rockwell Collins, which was acquired by United Technologies, is seen as a positive indicator of his ability to manage Boeing's complex operations and foster a strong corporate culture, which analysts believe Boeing urgently needs.
Despite the positive reception of Ortberg's appointment, Boeing faces significant challenges. The company is grappling with a potential production strike in September, a struggling Defense business, and a Commercial business that has lost the trust of regulators and the public.
Boeing's production rates are expected to improve throughout the year, with plans to gradually increase 737 production quarter-over-quarter, aiming to reach a rate of 38 per month by year-end. The 787 program is projected to return to a production rate of five per month by the end of 2024.
Analysts at Jefferies maintain a Neutral rating on Boeing, noting that the demand for commercial aircraft remains strong and, as part of a duopoly, Boeing stands to benefit. However, Ortberg's leadership will be crucial in addressing the company's internal and external challenges.