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Boeing suspends forecasts as 737 MAX crisis weighs

Boeing has reported a 21% dip in first quarter profits as its 737 MAX airliners remain grounded worldwide following two crashes.

The world's largest commercial aircraft manufacturer said it had suspended its earnings forecasts and would issue new guidance at a future date as it worked to return the planes to service.

All versions of the aircraft were withdrawn last month - days after an Ethiopian Airlines jet came down outside Addis Ababa and five months after a Lion Air flight suffered a similar fate in Indonesia.

A total of 346 people died.

Investigations have centred on anti-stall software.

The company said it faced $1bn of extra costs in the three months to March related to the deadly accidents.

It revealed that efforts to provide a fix to the software had so far resulted in 135 "test and production flights" but it did not give details on when it hoped to resolve the issue and roll out updated training packages to airlines.

Boeing's decision not to update its earnings forecasts - guidance to investors on its expected future financial performance - reflects a lack of clarity on how much the crisis is going to cost the company.

There is the potential for lawsuits and regulatory penalties in addition to costs associated with finding a solution.

The company has cut production of the jets to 42 aircraft per month, down from 52, and total deliveries were 19% down on the same period last year.

Operating cash flow in the first quarter was around $350m lower, while core operating earnings were 21% down at just shy of $2bn.

Net earnings, which takes some one-off costs into account, were 13% down at $2.1bn.

Boeing boss Dennis Muilenburg said: "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.

"As we work through this challenging time for our customers, stakeholders and the company, our attention remains on driving excellence in quality and performance and running a healthy sustained growth business built on strong, long-term fundamentals."

Shares, which were 11% down on their pre-Ethiopia crash level ahead of Wednesday trading, were 1% higher in early trading after the update.