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Wednesday, Sep. 2, 1998
Boeing president resigns under pressure
Airline division decided change needed after production, financial problems
By TIM KLASS
Associated PressSEATTLE - The head of Boeing's commercial airplane business has resigned because of production snarls and financial losses at the aircraft maker.
Boeing Chairman Phil Condit said the company's directors concluded there had to be ``significant changes in the composition of the management team.''
Ronald Woodard, 55, submitted his resignation following a series of weekend meetings and it was approved Monday by Boeing's board of directors. He is being replaced by Alan Mulally, head of the company's military and space business.
Boeing President Harry C. Stonecipher, who had been the top executive at McDonnell Douglas until Boeing bought the company, was named acting chief financial officer. He replaces Boyd E. Givan, whose surprise retirement at age 62 was announced in July.
More personnel changes in the troubled commercial division are likely as Mulally puts together a management team, but no timetable has been established, spokesman Randy Harrison said.
Boeing stock rose $2.12 at $33.06 on the New York Stock Exchange Tuesday. Boeing had announced late Monday it would buy back up to 15 percent of its shares, a step intended to lift the company's depressed stock.
The commercial division group has been plagued in the past year by production snarls amid a surge in orders, attempts to double production and trouble in bringing out new versions of the popular 737 jetliner.
The problems have resulted in more than $2 billion in charges against earnings and a $178 million loss last year, the company's first annual loss in 50 years.Post your comments about local news eventsFront Page || Main Index || News || Business || Texas || South Texas Outdoors || Birdwatching || Sports || Entertainment || Selena || Education || South Texas Attractions || World Wide Web