One of Boeing’s biggest profit drivers, its best-selling 737 Max jet, is responsible for a slide in the company’s earnings.
The aviation giant said on Wednesday that revenue for the first quarter slumped 2 percent after the plane was grounded worldwide last month over two deadly crashes in less than six months. Overall, the company said that increased costs and fewer deliveries associated with the 737 aircraft had pushed revenue for its commercial airplanes segment down more than $1 billion.
With deliveries pared back and production slowed, the company also suspended its forecast for the rest of the year.
Boeing is facing a barrage of lawsuits and investigations over the accidents, as well as reports of other production problems.
Dennis Muilenburg, Boeing’s chief executive, said in a statement that the company was working through a “challenging time.”
“Across the company, we are focused on safety, returning the 737 Max to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public,” he said.
Core earnings per share for the quarter fell 13 percent, to $3.16 from $3.64 a year earlier. Adjusted profit slipped 10 percent, to $3.75 a share from $4.15 a share.
Revenue sank to $22.9 billion from nearly $23.4 billion a year earlier. It had surged to a record high of $28.3 billion in the previous quarter.
Operating profit from the commercial airplanes division plunged 17 percent to $1.17 billion.