Directors at office furniture supplier Logic International Holdings expect the company to return to profitability in the second half of next financial year to March 1999. Executive chairman Huang Tieying said profit would be bolstered as costs came down and sales increased. Logic - 41 per cent owned by China Resources Enterprises (CRE) - posted a net loss of $48.05 million for the six months to September, compared with $28.33 million a year earlier. Mr Huang said Logic would cut operational and production costs, and had diversified its product mix over the past seven months after CRE took control. Mr Huang, an executive director at CRE, said Logic suffered losses as three mainland factories were running below capacity while its products had failed to appeal to the local market. 'Logic's production costs were 50 per cent higher than those of its competitors,' he said. Chief executive officer Adolf Lee said: 'We are projecting 20-30 per cent growth in production capacity in 1998-1999 after we launch new product lines.'