Elementis Share News (ELM)

* Expects to make progress in the second half

* H1 pretax profit down 10 pct to $67.5 mln

* Shares rise as much as 7.7 pct

By Karen Rebelo

July 30 (Reuters) - Specialty chemical maker Elementis Plc reported a 10 percent fall in pretax profit for thefirst half, hurt by maintenance shutdown at its chromiumdivision, but said it expected to make progress in the secondhalf.

Elementis, which makes additives used in industrialcoatings, cosmetics and oilfields, said it expected a bettersecond half as it would not have any maintenance shutdownsduring the period.

"There was quite a downturn in oilfield drilling in theUnited States in the second half of last year, so in the secondhalf of this year we will be comparing ourselves against that,"Finance Director Brian Taylorson told Reuters.

Elementis's shares rose as much as 7.7 percent on the LondonStock Exchange on Tuesday morning.

Pretax profit fell to $67.5 million for the six months endedJune 30 from $75.1 million a year earlier. Revenue fell 3percent to $388.2 million.

Sales at Elementis's chromium business, which makeschemicals that are used to make products such as metals, woodand leather more durable, fell 18 percent due to the maintenanceshutdown and challenging markets, particularly outside NorthAmerica.

The company said it needs to periodically close its plantsto realign the kilns used to make chrome chemicals.

"The last one (maintenance shutdown) that we did was towardsthe end of 2011 ... the next one will probably be in the middleof 2014," Taylorson said.

Elementis raised its interim dividend to 2.57 cents from2.45 cents a year earlier.

"Assuming there isn't any acquisitions in the second half itlooks like we will be in a net cash position by the end of theyear. That would probably mean a special dividend paid in thenext year on top of the one we paid this year," Taylorson said.