Boeing CEO outlines strategic priorities amid third-quarter results

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Kimberly (Kim) Pastega Chair, Manufacturing Operations Council Vice President, Manufacturing and Safety Boeing Commercial Airplanes | Boeing

By Sky Industry News

Oct 23, 2024

Boeing President and CEO Kelly Ortberg addressed employees today, outlining his vision for the company's future as they reported third-quarter 2024 results. Ortberg emphasized the need for unity in overcoming current challenges and shared his prepared remarks ahead of a financial results webcast.

Ortberg acknowledged the difficulties Boeing faces, stating, "The trust in our company has eroded. We’re saddled with too much debt. We’ve had serious lapses in our performance across the company which have disappointed many of our customers." However, he also highlighted potential opportunities: "Our company backlog is roughly half-a-trillion dollars. We have a customer base that want us and need us to succeed."

Ortberg's strategy focuses on four key areas: cultural change, business stabilization, improved execution discipline on new platforms, and building a new future for Boeing. He stressed the importance of cultural transformation at Boeing: "Culture is driven by values, and we’ll redefine those for the company together."

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Stabilizing the business is another priority for Ortberg, who mentioned efforts to resolve an ongoing strike: "The first and foremost on everybody’s mind today is ending the IAM strike." He expressed hope that a proposed package would facilitate employees' return to work.

On improving execution discipline, Ortberg noted that better management of risks on projects is crucial. This includes focusing on supply chain management improvements.

Looking towards Boeing's future, Ortberg stated that developing a new airplane will be necessary but emphasized that foundational work must come first. This involves stabilizing operations and streamlining portfolios.

Ortberg concluded by affirming commitment to change: "We have a plan and change is already underway. This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again."