Monsanto, the US agri-business group, which is controlled by Pharmacia, said yesterday that US acreage planted with its controversial genetically-modified seed rose 17 per cent during 2001, to 84.2m acres - higher than its previous 11 per cent estimate made in July.

But Monsanto shares fell sharply - down Dollars 4.99 at Dollars 31.80 - as the company reported lower-than-expected results for the third quarter and pruned back future guidance. The company told analysts that it expected some additional growth in GM acreage, both inside and outside the US, next year. But it admitted that more substantial advances might be delayed until 2003, when regulatory approvals outside the US might be achieved and new traits come on stream.

Executives added that they were "cautiously optimistic" of winning approvals to plant Monsanto's GM soyabean seed in Brazil in time for the coming growing season - although environmental groups have pledged to oppose any lifting of the ban there. Brazil is one of the largest producers of soyabeans.

Monsanto said sales growth guidance for 2001 overall, previously in the 2-4 per cent range, would be about 2 per cent. Earnings per share would be Dollars 1.79-Dollars 1.82, up about 5-7 per cent from year-ago levels.

Earnings growth next year could accelerate to 20-30 per cent, but with the bulk coming from a new accounting standard which lowers goodwill amortisation expense. Underlying business growth is expected to drive about one-fifth of that improvement.

The news came as Monsanto made a loss of Dollars 37m, or 15 cents a share, ahead of non-recurring items, in the third quarter. The quarter is usually lossmaking for seasonal reasons, and analysts had been predicting a 13 cents a share deficit on average, according to First Call.

** NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed for research and educational purposes only. **