NEW TECHNOLOGY

NEW TECHNOLOGY Some well-known “new economy” companies are notorious for their huge losses. But many of the technology companies with the largest market capitalisations are extremely profitable, and becoming more so. The fastest growth in global profits for big firms is expected to come from wireless telecoms, according to HSBC, a London-based financial group. Profits in that sector in 2000 and 2001 are forecast to rise by an average of 45% a year. Internet companies are expected to see the second-fastest profit growth, at an average of 37%. Reflecting the industry's relative maturity, computing businesses are projected to see more sedate rises of 23% for hardware firms, 20% for software firms and 17% for computer-services providers. Profits growth in pharmaceuticals, another relatively mature sector, is forecast at 14.5%. Some “old economy” businesses may fare much better: profits of paper companies are forecast to grow by 28%, and steel and other metal firms should see increases of 24%.