The company posted a 45 percent rise in net income to $252 million, or 93 cents a share, for the fiscal third quarter ended May 31, compared with $174 million, or 66 cents, in the year-earlier quarter.

Biotech crops are a hotly debated issue and opposition is stiff in many areas around the globe. But U.S. farmers have embraced genetically modified soybeans, and new Monsanto corn seed and other products are making inroads both inside the United States and abroad, according to the company.

Monsanto Chairman Hugh Grant said the company is pushing forward with new biotech products, including a corn genetically modified to protect against insects that has recently received approval in Japan and will be launched in the United States next year.

Grant reiterated yesterday that the increasing focus on biotech-seeds businesses should result in compounded annual EPS growth of 10 percent in 2005 and 2006. "That is really the main driver for our future growth," he said.

To capitalize on the popularity of its biotech crops, Monsanto will raise prices next year for certain branded Roundup Ready soybeans $4 to $5 an acre and $2 an acre for Roundup Ready corn, Grant said.

Company officials did not mention their May decision to suspend plans to introduce what would have been the world's first biotech wheat, in the face of market opposition. They said biotech acreage was increasing despite assertions by critics that opposition to genetically modified crops is growing.

Monsanto estimated U.S. growers planted 65 million acres of Roundup Ready soybeans this year, up 2 million acres, and pegged Roundup Ready corn at 16 million acres, up 4 million acres.

Monsanto officials said the popularity of biotech corn in North America helped push quarterly revenue up 11 percent in the company's seeds and genomics unit, while conventional corn seed did well in Europe. Biotech soybeans, cotton and canola seeds also were key growth factors.

The results beat expectations as analysts on average had forecast earnings of 85 cents, according to Reuters Estimates, and Monsanto last week had forecast 90 cents a share.

Analysts said they were generally pleased with the company results, though they expressed some surprise over bad-debt reserve increases in Argentina, and questioned expectations for future sales declines in herbicides as well as ongoing litigation expenses.

Monsanto officials said the herbicide business continues to level off due to increased competition, and that a third-quarter gain of 27 percent in herbicide sales was due in part to earlier-than-normal applications by U.S. farmers.

The company said quarterly results also benefited from a reduced tax rate to 24 percent from 33 percent following resolution of several issues with the Internal Revenue Service.

Monsanto shares were up 87 cents or 2.3 percent at $38.07 on the New York Stock Exchange yesterday afternoon. Earlier in the day, the shares hit $38.10, their highest level since July 2001.