NEW YORK (

TheStreet

) --

Lockheed Martin

(LMT) - Get Report

reported solid year-on-year revenue growth but said second-quarter earnings fell because of a big hit the company took on severance charges for employees it eliminated due to global economic conditions.

The Bethesda, Md.-based corporation reported net income of $742 million, or $2.14 a share, on revenue of $11.55 billion. The numbers beat Wall Street consensus estimates for earnings of $1.94 a share on revenue of $11.45 billion. A year earlier, Lockheed earned $824 million, or $2.22 a share.

"During the second quarter, we had strong execution across the company even while implementing difficult measures to rightsize our business for an environment that remains challenging," said Bob Stevens, Lockheed's CEO, in a statement. The company recorded $97 million in severance charges in the second quarter.

Lockheed said that it would need to cut more jobs as national governments continued to slash budgets.

The company updated its 2011 guidance for earnings from continuing operations to $7.35 to $7.55 a share from $6.95 to $7.25 a share.

-- Written by Joe Deaux in New York.

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