UPDATE 1-Afrox H1 profit flat, cautious on outlook

* Headline EPS at 39.8 cents vs 38.7 cents

* Revenue falls 3 pct to 2.3 bln rand

* Dividend maintained at 19 cents per share

(Adds details, shares)

JOHANNESBURG, Aug 26 (Reuters) - Africa's biggest gases and welding group African Oxygen Ltd (AFXJ.J) posted flat half-year profit as cost cuts offset declining sales.

Afrox, majority-owned by German's Linde Group (LING.DE), said on Thursday headline earnings per share was totalled 38.8 cents in six months to end-June from 38.7 cents a year ago.

Headline EPS is the main profit gauge in South Africa and strips out certain one-off items.

Shares of Afrox, which are up 4.5 percent so far this year, fell 1.74 percent to 22.60 rand, lagging a 1.11 percent gain the All-share index .JTOPI.

The company said revenue fell 3 percent to 2.3 billion rand ($313.5 million) as industrial sector spending remained under pressure.

Afrox, whose gases and welding products are used in industries ranging from vehicle manufacturing to hospitals, as slower economy growth crimped demand for its products.

The company maintained a cautious outlook, saying it would focus on managing costs because it did not expect a significant improvement in the South African economy.

Afrox saved about 200 million rand last year after laying off 15 percent of its staff and dropping slow-moving product ranges.

An interim dividend of 19 cents was declared, unchanged from the same time last year.

(Reporting by Tiisetso Motsoeneng; Editing by Gugulakhe Lourie)