The Boeing Company’s BA board of directors elected Dennis A. Muilenburg as their new Chief Executive Officer (“CEO”). Muilenburg who previously served as the company’s president and chief operating officer since 2013 will succeed W. James (“Jim”) McNerney, Jr. as the 10th CEO of the company on Jul 1.
However, McNerney will continue to serve the company till Feb 2016 to facilitate the smooth transfer of his responsibilities to Muilenburg and also guide the company on important issues related to its domestic and global customers, partners and stakeholders.
Muilenburg, 51, joined the company’s engineering division as an intern in Seattle in 1985. As a veteran of the company, he has played key roles in managing programs and handling responsibilities related to engineering fields.
The company’s outgoing CEO, James McNerney, spoke highly of Dennis. McNerney believes that Dennis has the potential to develop improved management skills, greater focus on customers’ requirements and insight into the business and engineering portfolios of the company, leading forward.
According to Boeing’s new CEO, Dennis Muilenburg, the company has a strong financial condition and a solid market presence. He believes that by integrating commercial skills, capabilities and experience, the company will be able to develop innovative methods to cater to customers’ requirements, foster future growth and benefit its stakeholders.
As the new CEO, Muilenburg is likely to face challenges related to the profitability of the 787 Dreamliner. Deferred production cost for the Dreamliner rose to $26.94 billion at the end of the first quarter and it is expected to grow at similar levels for the next couple of quarters, which might leave a negative impact on the profitability of these jets.
Boeing currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the aerospace sector are TransDigm Group Incorporated TDG, sporting a Zacks Rank #1 (Strong Buy), and Northrop Grumman Corporation NOC and Leidos Holdings, Inc. LDOS, both carrying a Zacks Rank #2 (Buy).
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