Boeing CEO Kelly Ortberg is calling for a “fundamental culture change” at the struggling plane maker as the company reported staggering losses of nearly $8bn for the year due to a strike that halted production of its 737 MAX, 777, and 767 planes. The company’s CFO expects continued cash burning in the next few years, leading to a drop in Boeing’s shares.
Ortberg emphasized the need to improve performance in defense and commercial airplane programs while stabilizing Boeing. He acknowledged that the company’s reputation has been damaged, but believes it can be great again with time.
Boeing is considering selling assets and downsizing its workforce to focus on core businesses. The company’s plan to address its balance sheet in the near term might include an offering of equity and equity-linked securities.
Analysts say a new contract proposal being voted on by striking workers is crucial for Boeing’s future, as production delays continue due to the strike. Restarting production of 737 MAX, 767, and 777 will be a challenge, especially with a struggling supply chain.
Despite the challenges, analysts view Ortberg’s comments as encouraging, as Boeing is starting to recognize and address its issues. Quarterly revenues fell, and the cash burn increased significantly compared to the previous year.
Ortberg’s cautious approach to turning Boeing around reflects a comprehensive effort to address the company’s financial struggles and reputation damage, providing hope for a brighter future.
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