By Kosaku Narioka


Nippon Yusen KK shares rose sharply Friday morning after the Japanese shipping company announced a stock split and projected a higher year-end dividend.

The shares were recently 7.2% higher at 11,400 yen after rising as much as 8.4% earlier.

Nippon Yusen said Thursday after market close that shareholders would receive three shares on Oct. 1 for every share they hold, and that the split was aimed at lowering the minimum amount of money required to buy its shares and attracting a wider base of investors.

The company projected a dividend of Y135 a share for the end of the fiscal year ending March 2023, or Y405 a share on a pre-split basis, compared with the previous view of Y400 a share.

Earlier this month, Nippon Yusen projected fiscal-year revenue to rise 0.8% to Y2.300 trillion ($18.10 billion) and net profit to drop 29% to Y720.00 billion, as it expects demand to moderate somewhat for container shipping and logistics operations.

The Topix subindex for shippers was recently 5.0% higher and the Nikkei Stock Average was up 0.6%.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

05-26-22 2237ET