Kelly Ortberg, a Dubuque, Iowa native, has been appointed as the new Chief Executive Officer of Boeing, one of the world’s largest aircraft manufacturers. The 64-year-old engineer will officially take on the role on August 8, succeeding current CEO Dave Calhoun, who announced his resignation in March. This leadership change ends months of uncertainty for Boeing and has been positively received by investors, evidenced by a notable rise in Boeing’s stock prices following the announcement.
Kelly Ortberg brings a wealth of experience to Boeing, having previously served as CEO of Rockwell Collins, a prominent player in the aerospace industry. Ortberg’s tenure at Rockwell Collins and its subsequent transformation into Collins Aerospace after merging with United Technologies showcases his deep expertise in both the defense and commercial aerospace sectors. His career trajectory saw him grow within the company, ultimately leading it through significant industry shifts and mergers.
Boeing’s selection of Ortberg is seen as a strategic move to restore confidence and drive a turnaround in the company’s financials, especially following a tumultuous period marked by controversy and federal investigations. These issues were exacerbated by a mid-flight incident involving one of Boeing’s 737 Max jets in January.
The market has reacted favorably to Ortberg’s appointment. Boeing’s shares surged as investors welcomed the stability and experienced leadership Ortberg is expected to bring. Analysts, including Ron Epstein, a senior aerospace and defense analyst at BofA Securities, have expressed optimism about Ortberg’s potential impact on Boeing’s future. Epstein highlighted Ortberg’s extensive background and capabilities, emphasizing his proficiency in managing both defense and commercial aerospace businesses.
“The choice of Kelly Ortberg, I think, is actually a very good choice,” Epstein stated. “He was the CEO of Rockwell Collins, a position he excelled in throughout his career. He understands the complexities of the aerospace industry and has proven his ability to lead and innovate. His experience as a special advisor to Greg Hayes at Raytheon further underscores his expertise and readiness for this role.”
Ortberg’s appointment comes at a critical time for Boeing, which recently reported wider-than-expected profit losses in its second-quarter earnings results. Investors and industry stakeholders are looking to Ortberg to navigate the company through these financial challenges and restore its reputation and profitability.
His leadership is anticipated to bring a fresh perspective and strategic direction, leveraging his comprehensive industry knowledge and successful track record. As Boeing continues to address past issues and forge a path forward, Ortberg’s expertise is seen as a vital asset in steering the company towards stability and growth.
