CHICAGO - Boeing Co. faces another transition at the top following Alan Mulally's unexpected switch from planes to automobiles. But after absorbing two CEO changes in two years without losing momentum, it looks well-positioned to withstand Mulally's departure to run Ford Motor Co.
Losing Mulally as the head of Boeing Commercial Airplanes was a price the aerospace company paid Tuesday for bypassing him for the CEO's job last year and choosing Jim McNerney of 3M Co. instead.
Boeing was ready. Anticipating a potential move months ago, McNerney promptly named the airplane division's sales ace Scott Carson to replace Mulally as president and CEO of the Seattle-based unit.
Aerospace industry analysts and Wall Street took the news calmly. Boeing shares edged down just 18 cents in late-hours trading following the announcement.
Noting that the 60-year-old Carson played a key role in the turnaround of Boeing's commercial jet-making business, Morningstar analyst Chris Lozier said his promotion should forestall any concerns about Mulally's move.
"It's definitely a loss," he said. "He's a pretty savvy CEO with a ton of experience at Boeing. Having been there for almost four decades, not many people know the business as well as he does. But I don't think we need to worry any more or less about the 787 or about Boeing's competitive position with Airbus."
Teal Group analyst Richard Aboulafia said he expects a smooth transition with Carson taking the reins, crediting him with "a phenomenal record of sales success in the past two years."
Mulally, 61, leaves behind a company that has undergone a major rebound in recent years, driven largely by an uptick in sales of commercial planes. Amid continuing strong demand for the 787, which is still in development en route to a test flight next year, no letup is seen as likely.
Prudential Financial analyst Byron Callan said he saw no sign of trouble in the move.
"We don't see Mr. Mulally's departure as a broader reflection of looming problems at Boeing, but simply a reflection of a once-in-a lifetime opportunity to run a major global company," he wrote in a note to investors.
Carson had been vice president of sales for the airplane and is a 34-year veteran of the company. McNerney called him "the natural choice" for the job and touted him as the force behind reinvigorating the sales team that delivered record airplane orders last year.
"We expect this to be a very smooth transition," he said.
The newly appointed executive will be aided in the position by James Jamieson, 58, who was named to the new post of chief operating officer of Boeing Commercial Airplanes. Jamieson has been senior vice president for engineering, operations and technology, at Boeing's corporate offices in Chicago.
Carson was appointed to head commercial airplanes sales in December 2004 at a time when Airbus was increasing its dominance in delivering airplanes. He previously headed Boeing's inflight Internet venture, Connexion by Boeing, and held various positions in the company's space, defense and commercial operations.
On a conference call, he said he has a more reserved personality than the outgoing Mulally but a similar style and indicated he plans no changes any time soon.
"The machine here at BCA is running very well," he said. "I'm quite comfortable in continuing to implement the plan that we have."
Asked his top three priorities in the job, he replied: "This next year is critical to us in completing and flying the 787. We are also going through a series of production rate changes, and we have to do this effectively and we have to continue the momentum in the marketplace."
McNerney told analysts and reporters that after Ford approached Mulally about a month ago, he told the airplanes chief he should stay with Boeing. But it was clear that he had "an itch he had to scratch" in running a big company.
"He will have to learn that industry, and that will involve some listening as well as some digging into the details of the company," he said. "But I think Alan can pull it off."
Mulally, who joined Boeing in 1969 as an engineer, was in charge of the company's airplane production at a time when it was overtaken by European rival Airbus. But he oversaw a turnaround in the last couple of years, aided by a flood of orders for the new 787 jet. In 2005, the business generated orders and sales of nearly $23 billion.
Bill Dugovich, spokesman for Boeing's engineers union - the Society of Professional Engineering Employees in Aerospace - called Mulally's exit disappointing. He said he didn't know enough about Carson to predict how the commercial plane unit would fare under his leadership, but noted, "It certainly could usher in a change of philosophy at the Boeing Company. We'll wait and see."
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AP Business Writer Elizabeth M. Gillespie in Seattle contributed to this report.
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