Boeing shores up Defence unit leadership after delays
25 Oct 2022
BOEING Co. is trading up 0.27% at 141.45
Boeing Co has appointed a senior troubleshooter to help turn around loss-making programs at its Defense, Space & Security (BDS) division in what some sources view as a potential template for future efforts to fix wider industrial woes.
Steve Parker, head of Boeing (NYSE:BA)’s bomber and fighter programs as well as its St Louis defense plants, has been promoted to the new role of chief operating officer for the division, which makes up almost half of Boeing revenues, industry sources said.
A Boeing spokesperson confirmed last week’s appointment, which has not been announced publicly.
Parker will report to Ted Colbert, who was appointed chief executive officer of BDS earlier this year after a career mainly in IT services followed by the helm of Boeing Global Services, which provides parts and engineering for airlines and military.
The move to strengthen industrial leadership comes after delays and cost overruns blighted a series of long-term projects for which Boeing is locked in to a fixed price.
Investors and customers have expressed concerns over development and production delays across the company at a time when Boeing is digging itself out of a crippling safety crisis over the 737 MAX jetliner and $45 billion of net debt.
Chief Financial Officer Brian West said last month fixed-price defense contracts were being “knocked around” by supply chain problems, inflation and labor shortages.
In the second quarter, Boeing took $400 million in charges on programs including the MQ-25 refuelling drone for the U.S. Navy and its Starliner commercial crew project for NASA.
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