Saab Gets FMV's SEK 467 Mln Orders, SEK 11.2 Bln Potential Orders; Stock Rises

(RTTNews) - Shares of Saab AB (SAABF.PK) climbed around 7 percent in Stockholm trading after the defence and security company said it has received 467 million Swedish kroner worth orders from the Swedish Defence Materiel Administration or FMV.

In addition, the companies have signed a Letter of Intent regarding the Swedish armed forces' underwater capability for the period 2015-2024. The LoI includes potential orders of approximately 11.2 billion kroner. It comprises support, development, design and production of submarines and other underwater systems.

Regarding the firm orders, the company said they are for construction and production plans for the next generation submarines and to conduct a mid-life update of two Gotland-class submarines. This includes the completion of systems design and to perform detail construction. The company said the work will be carried out in Sweden within Saab's business area Security and Defence Solutions. It will make the delivery in 2014-2015.

Gunilla Fransson, Head of business area Security and Defence Solutions, Saab, said, "Saab has substantial experience within the naval domain as supplier to warships and submarines around the world. With today's orders and the Letter of Intent we take the next step towards becoming a full-service provider of submarines for Sweden. It strengthens our offer and our unique competence within systems integration."

In Stockholm, Saab shares are gaining 14.20 kroner or 7.29 percent, and trading at 209 kroner.