Lockheed Martin Corp.'s (LMT) first-quarter net income fell 8.8% on higher pension-related expenses, though the defense contractor raised its full-year profit outlook.

Lockheed, the biggest supplier of information technology to the U.S. government, recorded net income of $666 million, or $1.68 a share, compared with $730 million, or $1.75 a share, a year earlier. The latest results included 19 cents in pension-related expenses, while the prior year's results were boosted 5 cents by a pension adjustment.

Revenue increased 3.9% to $10.37 billion.

Analysts polled by Thomson Reuters expected earnings of $1.64 and revenue of $10.51 billion.

Lockheed posted a 5.2% increase in information systems and global services earnings, as revenue rose 10% on higher volume on enterprise civilian services. Aeronautics division profits grew 9.9% as revenue edged down 0.9% on declines in combat aircraft.

Looking ahead, the company raised the range of its full-year earnings outlook to $7.15 to $7.35 a share from January's projection of $7.05 to $7.25. The company affirmed its revenue guidance of $44.7 billion to $45.7 billion.

Analysts have said the defense industry may enter a downturn as the Obama administration sets its priorities elsewhere. Earlier this month, U.S. Defense Secretary Robert Gates proposed sweeping changes to weapons programs, including ending production of Lockheed's F-22 Raptor at 187 jets. However, Standard & Poor's Ratings Services said those proposed changes likely won't hurt defense companies in the short term, since they won't take effect for at least a year.

The company, like other defense contractors, has also been looking to military support work to augment its traditional aerospace engineering work. To that end, it won a 10-year contract worth up to $5 billion to supply U.S. commandos with logistics support, unseating L-3 Communications Holdings Inc. (LLL).

Lockheed Martin's shares closed Monday at $75.73 and haven't traded premarket.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com