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Investing.com -- Boeing (NYSE:BA) announced on Monday that Jesus “Jay” Malave will take over as chief financial officer (CFO) on August 15. He replaces Brian West, who will transition to an advisory position, the company said.
West, who joined Boeing in 2021, helped steer the company’s finances through a challenging stretch that included rising debt and persistent delivery setbacks.
Malave most recently served as CFO at Lockheed Martin (NYSE:LMT) before leaving the defense contractor in April. He previously held senior finance positions at L3Harris Technologies (NYSE:LHX) and United Technologies (NYSE:RTX).
His appointment comes as Boeing pushes forward with a company-wide overhaul aimed at restoring trust and increasing aircraft output under CEO Kelly Ortberg.
“We believe Jay’s experience could be a positive in Boeing Defense, Space & Security’s (BDS) turnaround story,” RBC Capital Markets analysts commented in a note.
“We believe the timing of the transition makes sense,” they added, pointing to Boeing’s progress toward producing 38 737 MAX jets per month and efforts to reduce risk in its defense business.
RBC also highlighted Fitch’s recent move to revise its outlook on Boeing to “stable” while maintaining its BBB- rating.
Still, the brokerage noted that uncertainty remains around the Air India 787 crash investigation and ongoing supply chain challenges, which continue to weigh on investor sentiment.
“The announcement of Jay Malave as Boeing’s CFO does not come as a complete surprise, with his abrupt departure from Lockheed Martin announced on April 17th,” said Morgan Stanley (NYSE:MS) analysts in a separate note.
Citi analyst Jason Gursky had similar comments, saying the appointment “isn’t surprising to hear” as Boeing CEO Ortberg “builds his own team to get the company back on track.”
“We also note that Malave appears to be well liked by investors and his experience in prior accounting, Investor Relations Officer (IRO) and operational CF roles should provide the proper support for Ortberg’s vision,” he added.
Malave and Ortberg previously worked together during the Collins Aerospace merger.