* H1 core profit $36 mln vs loss of $6 mln a year ago
* Share price up more than 10 percent in early trade (Adds shares, detail, background)
By Barbara Lewis and Mamidipudi Soumithri
LONDON/BENGALURU, May 16 (Reuters) - South Africa-focusedplatinum producer Lonmin reported a core profit onMonday after cost savings, and said it expected firm chemicaland car industry demand for the rest of the year despite theVolkswagen diesel emissions scandal.
Its shares rose more than 14 percent in early trading,outperforming the wider mining sector, which was around 2percent higher.
Lonmin's shares have lost around 90 percent of their valueover the last year, hit by a strike, rising costs and plungingplatinum prices. In December, the company raised $400 millionfrom selling new shares.
In its first-half results statement, Lonmin said it had cutlosses per share to 1.8 cents from a loss of 164.6 cents thesame time a year ago, and reported a core profit of $36 millionversus a loss of $6 million in the first half of 2015.
Cost-cutting is ahead of schedule, with close to 70 percentof the full-year target of savings of 700 million rand ($45million) already achieved.
Net cash improved to $114 million at the end of March,compared with $185 million net debt at the end of September.
CEO Ben Magara said in a conference call he did notanticipate further job cuts at current market conditions, butadded conditions may change.
Volkswagen's admission last year that it cheated U.S. dieselemissions tests could, analysts have warned, hit sales of dieselcars, which need platinum for catalytic converters.
But Lonmin predicted emerging markets would spur demand asthey seek to catch up with the "ever tightening emissionstandards of developed markets".
It also said it saw firm chemical industry demand, while thejewellery market could remain static during the year.
($1 = 15.5008 rand) (Editing by Adrian Croft and Mark Potter)