UPDATE 1-Implats H1 headline EPS up 14 pct, output falls

* Sees little recovery in platinum market owing to crisis

* Headline EPS rises, output falls

(Adds details)

JOHANNESBURG, Feb 19 (Reuters) - Impala Platinum (IMPJ.J), the world's No. 2 producer of the metal, posted a 14 percent rise in headline earnings to 8.77 rand per share for the first half despite lower output, but warned of weak demand ahead.

Impala Platinum's (Implats) earnings were boosted mainly by a weaker rand against the U.S. dollar during the six months to end December, but the group said production and cost performance had been "extremely disappointing".

Total platinum production for the group fell 14.8 percent to 878,000 ounces. This lower output and ongoing inflation resulted in unit costs rising by 36.9 percent to 8,681 rand per platinum ounce, the company said.

Implats said due to the uncertainty in the global economy, it was difficult for it to forecast the outcome for 2009.

"Suffice to say we do not expect any major recovery in automotive demand," the company said in reference to the biggest consumer of the white metal used mainly to make catalysts that help clean car exhausts.

"In this environment, and with reduced metal availability from South Africa, Russia and perhaps more significantly the recycle market (both automotive and jewellery), we expect the market to register a small surplus for 2009."

Implats, which last month walked away from its proposed acquisition of rival Mvelaphanda Resources (Mvela) (MVLJ.J) and Mvela's unit Northam Platinum (NHMJ.J), declared an interim dividend of 1.20 rand per share.

(Reporting by James Macharia)