By David Bailey

DETROIT (Reuters) - TRW Automotive Holdings Corp (TRW.N: Quote, Profile, Research) posted a quarterly profit on Thursday that exceeded analysts' forecasts, supported by growth in auto safety product sales and its shares jumped as much as 14 percent.

TRW said higher customer vehicle production in Europe and China more than offset price cuts on its parts overall and declines in production by North American-based customers.

The company said it expects mounting challenges in 2008, especially in North America where its customers are expected to have significant vehicle production declines in the first half of the year. But the midpoint of TRW's 2008 forecast was above analysts' estimates.

Stronger-than-expected production in North America and Europe and improved operations after restructuring drove the better-than-expected fourth-quarter earnings, JP Morgan analyst Himanshu Patel said in a note to clients.

TRW's forecast "could calm some potential fears of downside risk to consensus given the weak (North American) production outlook," Patel added.

Net earnings rose to $56 million, or 55 cents per share, in the fourth quarter, from $33 million, or 32 cents per share, a year earlier.

Excluding tax benefits, TRW reported earnings of 44 cents per share in the quarter. Analysts on average expected TRW to report earnings of 39 cents per share on that basis, according to Reuters Estimates.

Revenue rose 19 percent to $3.89 billion. Analysts expected $3.69 billion.