Boeing to see lower 777 rate after June 2010

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Boeing will slash production of the 777 next year due to weakening demand.

The monthly production rate for the 777 will decline from seven to five aircraft after June 2010, the company announced on 9 April.

"It's necessary to adjust our production plans to align supply with these tough market conditions," says Boeing Commercial Airplanes president and CEO Scott Carson.

At the same time, Boeing will defer a "modest increase" for 747-8 and 767 production, but maintain the 737 rate. Boeing did not release any new information about the 787 production ramp.

Boeing cited delivery referrals, not order cancellations, as the sole driver for the production changes.

Meanwhile, Boeing acknowledges slower production and a price escalation for the 747, which is "currently in a loss position". Most units in the backlog will be delivered at reduced earnings levels, Boeing says.

The production cutbacks and price escalation has forced Boeing to report a decline of first quarter profits equal to $0.38 per share, the company says.