EUROPE'S largest sewing machine manufacturer G.M. Pfaff posted a loss of 11 million marks (about HK$58 million) for the first half, compared with a loss of 12.9 million marks a year ago. The 72 per cent-owned subsidiary of Hong Kong-listed Semi-Tech (Global) yesterday said the unsatisfactory conditions which affected its major markets last year 'have levelled out and improved trading is expected'. It said sales and profits in the six months ended June were actually better than last year but had been hurt by the appreciating mark. Company sales in the first six months were 365 million marks, compared with 392 million in the previous period. Gross profit rose from 117 million to 118 million marks. Operating profit was 3.1 million marks, against a loss of 8.9 million marks previously. Exchanges losses of 6.7 million marks and a restructuring charge of 2.3 million marks accounted for most of the net income loss this year.