June 9, 2014 / 8:45 AM / 3 years ago

Saab says potential Swedish defense orders worth $1.7 billion

STOCKHOLM (Reuters) - Swedish defense company Saab said it had potential orders of around 11.2 billion Swedish crowns ($1.7 billion) from the Swedish Defence Material Administration and had signed a letter of intent over a long-term submarine contract.

Saab shares soared 8.1 percent at 3.52 a.m. ET on Monday, while the broader Stockholm share index rose 0.8 percent.

Additionally, Saab said it has received orders worth 467 million crowns in 2014-2015 from the government body that provides the military with defense equipment and services.

The company said the letter of intent, which covers support, development, design and production of submarines and other underwater systems, referred to the period 2015-2024.

"With today's orders and the letter of intent we take the next step towards becoming a full-service provider of submarines for Sweden," Saab said.

Last month, Swiss voters rejected a proposal to spend $3.5 billion on new Gripen fighter jets from Saab.

Saab has a framework deal with Sweden for 60 new-generation jets.($1 = 6.6296 Swedish Kronas)

Reporting by Helena Soderpalm; Editing by Erica Billingham

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