TRW Automotive Holdings Corp. (TRW), one of the world's largest maker of safety parts, swung to a second quarter loss as production cutbacks by auto makers eroded its financial footing.

The company posted a loss of $11 million, or 11 cents a share, compared with a profit of $127 million, or $1.24 a share a year earlier. Sales decreased 38.6% to $2.7 billion

However, TRW joined a growing list of auto parts makers that are beginning to see signs of stabilization after making drastic job cuts over the past year. TRW's loss narrowed compared to the first quarter when the company reported a loss of $131 million.

"The restructuring and cost containment actions implemented over the previous three quarters had a significant impact," TRW Chief Executive John Plant said in a statement on Tuesday. "Finalizing the agreement with our lenders to protect our liquidity, in addition to our cost containment actions, should allow us to manage through the downturn.

Excluding special items, TRW reported a second-quarter profit of 8 cents a share, beating the average analyst estimate of a loss of 83 cents, according to a survey by Thomson Reuters.

Auto parts makers could find some additional relief through the "Cash for Clunkers" program heading into the second half of the year. The enthusiastic response is depleting new car inventory which will likely cause auto makers to increase their production plans.

"We remain optimistic the first half of 2009 was the trough in global automotive production for the current downturn," Plant said. "Vehicle production forecasts are indicating higher levels of production for the remainder of 2009 and into 2010."

TRW expects full-year sales to range between $10.5 billion and $10.9 billion, with third quarter sales expected to be approximately $2.8 billion.

-By Jeff Bennett, Dow Jones Newswires; jeff.bennett@dowjones.com; 248-204-5542