Boeing Co said on Thursday that it would cut airplane production in 2010, citing weak business conditions for commercial customers such as airlines and cargo operators, sending its shares down 3 percent in extended trading.

The company also said its first quarter earnings would be reduced by about 38 cents a share due to its production decisions and because it was not able to charge the prices it expected on planes delivered in the quarter.

Analysts expected profit of $1.19 a share for the first quarter, down from $1.61 a share a year earlier, according to Reuters Estimates. Boeing said it would update its full-year outlook when it posts quarterly results on April 22.

Chicago-based Boeing said output of its 777 wide-body twin-engine airliner will fall from seven to five planes a month beginning in June 2010. It added it will delay previous plans to modestly increase production of its 747-8 and 767 widebody model planes.

Analysts had cited the potential for production cuts at Boeing as the recession hurt results at airlines and other key commercial customers.

Boeing disclosed its planned cuts after markets closed on Thursday. Its shares fell 2.9 percent in extended trading from their close of $39.15 on the New York Stock Exchange.

(Reporting by Karen Jacobs; Editing Bernard Orr)