A drop in Hawaii container and automobile shipments and an increase in operating and handling expenses dragged down Matson Inc.’s earnings in the second quarter, but the company said it expects its overall results to improve during the second half of the year.

The state’s largest ocean shipper said Thursday that net income fell 10 percent to $18.1 million, or 42 cents a share, from $20.1 million, or 47 cents a share, in the year-earlier quarter. Revenue rose 4.8 percent to $436.4 million from $416.6 million.

Matson said it expects Hawaii volume to be flat to slightly up in the final six months compared with the same period in 2013. The company said that a new ship being built for competitor Pasha Hawaii Transport Lines in Pascagoula, Miss., is not expected to have much impact on Matson’s Hawaii trade in 2014 since the 692-foot vessel isn’t expected to come online for the Southern California-Hawaii route until the fourth quarter.

Matson, which became a stand-alone company on July 2, 2012, after being spun off by parent Alexander & Baldwin Inc., also said Thursday it was increasing its dividend by 6.25 percent to 17 cents a share from 16 cents a share. It will be payable Sept. 4 to all shareholders of record at the close of business Thursday.

Last quarter, Hawaii automobile shipments declined 15.5 percent to 19,600 from 23,200 in the year-earlier period, while container shipments between the mainland and the state slipped 2.5 percent to 34,800 from 35,700 primarily due to lower eastbound freight. China and Guam container shipments were up 1.9 percent and 1.6 percent, respectively, while Micronesia/South Pacific container shipments rose 29.2 percent on thin volume.

Overall, Matson’s ocean transportation revenue was up 3.6 percent to $321.1 million due primarily to higher freight yields across all major trade lanes and higher fuel surcharges, while its operating income declined 4.4 percent to $32.8 million due to higher expenses.

Regarding the September molasses spill in Honolulu Harbor from a Matson pipe that killed 26,000 fish, the company said government agencies have not initiated any lawsuits, presented the company with an accounting of their response costs, provided an assessment of natural resource damages or imposed any penalties. Thus far, Matson has incurred only $1.2 million in initial molasses-related costs that included response costs, legal expenses and third-party claims.

The company also finalized a $10 million settlement last week with the U.S. Department of Justice and a whistleblower over fuel surcharge reimbursements.

The Honolulu-based company’s stock fell 62 cents to $26.95 on Thursday. Its earnings were announced after the market closed.