(Bloomberg) -- Boeing Co. Chief Executive Officer Kelly Ortberg provided an unvarnished view of his company at a crossroads, absorbed by challenges ranging from huge debt to serious performance lapses that will need time to fix before it can consider developing a new aircraft.

In his first public presentation, Ortberg laid out a blunt assessment of what must change, saying Boeing has “some really big rocks that we need to get behind us to move the company forward.” Among the most immediate tasks, he said, is ending a strike that has crippled Boeing for weeks. Workers vote later today on whether to ratify a contract offer.

“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” Ortberg told employees in a message early Wednesday. 

Ortberg laid out a four-pronged plan that includes rebuilding a culture where management is close to the action on the factory floors to prevent “the festering of issues.” He’s also brought back detailed business reviews intended to unearth operations breakdowns before they morph into full-blown crises. And as it works to stabilize its business, he insists Boeing can’t lose focus on building an all-new airplane.

“Boeing is an airplane company and at the right time in the future, we need to develop a new airplane,” Ortberg said in prepared remarks to investors. “But we have a lot of work to do before then.”

Cash Drain

Boeing’s third-quarter earnings released on Wednesday underscored the task ahead. Boeing had already published some numbers earlier in the month, including $5 billion in charges, and revenue of $17.8 billion that missed analyst estimates. The company also had negative free cash flow of $2 billion in the quarter, adding to the drain in the preceding two periods.

The planemaker has been beset by cascading crises since a door-shaped panel blew off a 737 Max 9 model during flight in early January. The accident has put the focus on sloppy workmanship and poor oversight at Boeing, with regulators capping output to help steady processes and the board appointing new senior management, including hiring Ortberg in August as CEO.

Ortberg sought to lay out a road map for Boeing’s revival, infused with a sense of optimism that customers and employees want the company to succeed. Boeing also has more than $500 billion worth of aircraft in its backlog, which should aid the recovery, he said. 

Much of his four-page memo was devoted to changing Boeing’s culture, with Ortberg appealing to a pride in past accomplishments, a sense of common destiny and a drive for collaboration. That’s a shift in tone and strategy from the laser focus on shareholder returns and discipline around costs espoused by other Boeing’s leaders over the past 20 years. 

All but one of Ortberg’s recent predecessors were veterans of General Electric Co. under Jack Welch, reluctant to sketch out grand visions for the company or acknowledging Boeing’s past as an aerospace pioneer. 

Junk Rating

Ortberg also acknowledged that Boeing needs to get its finances in order if it wants to achieve any of its goals. The company recently put in place the first contours on a refinancing package that could reach $25 billion over the next three years, as Boeing seeks to prevent its credit rating from falling into junk territory. 

“I’m confident that we have a good path forward to manage the realities of our business and retain our investment grade rating,” Ortberg said. 

The three major credit-rating agencies have put Boeing on review for a downgrade, saying that a drawn-out strike would potentially force a cut into speculative grade. Workers vote until 5 p.m. Seattle time on whether to ratify the tentative accord, with the result likely to be known a few hours later. Two previous offers by the company were turned down.

At the same time, Ortberg hinted that a future Boeing will be “a leaner, more focused organization” as he sets priorities on what the company can achieve. 

Restoring the balance sheet will be a requirement for Boeing to consider its next commercial aircraft, Ortberg said. The planemaker hasn’t tackled an all-new development program since launching the 787 Dreamliner two decades ago, a risky bet given the enormous investment involved. Boeing is also six years behind schedule in certifying the first 777X model, which it said this month will now be delivered in 2026.

Rival Airbus SE, which reports earnings next week, has chipped away at Boeing’s market share, particularly in the field of the widely-flown narrowbody aircraft. Airbus competes with the A320neo family, and the company is largely sold out for that product to the end of the decade. Its larger A330 and A350 jets compete with Boeing’s 787 and 777 jets. 

--With assistance from Brooke Sutherland.

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