Keith Fitz-Gerald, president of the Fitz-Gerald Group, is looking at the top and bottom stocks before the market opens on Monday.
Boeing CEO Kelly Ortberg said Wednesday that “confidence in our company has been eroded,” and laid out plans for the aerospace giant to regain its industry leadership position while addressing financial challenges.
Who was Ortberg? Appointed CEO of Boeing has been facing an ongoing strike by Boeing's machinists in late July, affecting production, along with a loss of confidence stemming from a series of accidents, including a mid-air explosion of a 737 Max 9 door panel in January. There is. The company's balance sheet is also deteriorating, and the company is trying to avoid having its credit rating downgraded to “junk” status.
In prepared remarks, he said the company is “excessively indebted” and that confidence in Boeing has been eroded by “serious failures in corporate performance that have disappointed many of our customers.” He said there was.
Ortberg explained that Boeing needs to right the ship, which will require a “fundamental culture change” along with measures to stabilize the business and improved executive discipline on the company's new platforms.
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Boeing faces continued strikes and increased regulatory scrutiny, eroding consumer confidence and financial headwinds. (GIUSEPPE CACACE/AFP via Getty Images)/Getty Images)
“Our leaders, below me, need to be tightly integrated with the people who design and produce our business and products. factory floor“We need to know what's going on with our people, not just our products,” Ortberg said. And most importantly, we need to work better together to prevent problems from worsening and to identify, fix, and understand root causes. ”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BA | boeing company | 155.40 | -4.45 |
-2.78% |
He introduced a more detailed business rhythm to ensure that happens, saying culture change “has to be more than a poster on the wall” and that Boeing's redefined values are “It will be used to hold leaders accountable for how they lead our companies.” We are a team that provides safe and high-quality products and services to our customers. ”
Ortberg explained stabilization as follows: boeing business “This has been my main focus since I started in August,” he said, adding that they “have some really big rocks that we need to support to move the company forward.” Ta.
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The International Association of Machinists is considering a new proposal from Boeing that could end the strike. (Jordan Gale/AFP via Getty Images/Getty Images)
he said he would end it Strike by IAM is a top priority, and Boeing is “working diligently to find solutions” that work for Boeing and its employees. I have very high expectations.” You can immediately focus on rebuilding your company. ”
Regarding the challenge of “reopening factories and supply chains,” Ortberg said, “It's much harder to turn this on than to turn it off. So it's very important that we get this right.” Our safety and quality control systems will guide us through the reopening and we have a detailed return to work plan and everyone will be able to return and follow that plan. I’m really looking forward to working on it.”
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Boeing faced a regulatory moratorium earlier this year affecting production of the 737 Max, which remains subject to production limits imposed by the FAA. (Photo by Jennifer Buchanan/Pool/AFP via Getty Images/Getty Images)
He said Boeing has developed and is implementing safety and quality plans. The plan will be part of the criteria the Federal Aviation Administration uses to determine whether production systems are stable enough to ensure safety, it said. Agency approval Toward improving the production rate of the 737.
“Another big rock in stabilizing the company is managing its balance sheet in a way that allows it to maintain an investment-grade credit rating,” Ortberg said. “We have a plan and we are executing on that plan. We are confident that we have a good path forward to managing the realities of our business and maintaining our investment grade rating.”
Boeing last week announced plans to raise up to $35 billion to strengthen its balance sheet and maintain its investment-grade credit rating.
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Ortberg also said Boeing's outlook includes a backlog of “approximately $5 trillion,” as well as a “customer base that wants us and needs us to succeed,” and “a customer base that wants us and needs us to succeed.” He also noted some positives about Boeing's outlook, including a “hungry workforce.” Returning to the iconic companies we know and love who set the standard for the products we offer. ”
