UPDATE 2-AutoZone profit beats estimates; shares rise

* Q2 EPS $2.03 vs estimates of $1.85/shr

* Shares jump more than 12 percent to record high (Adds share prices, industry background, DETROIT to dateline)

DETROIT, March 3 (Reuters) - Retailer AutoZone Inc (AZO.N),reported a better-than-expected 9 percent rise in quarterly profit on Tuesday, buoyed by higher demand for replacement auto parts amid the severe downturn in new vehicle sales.

Shares of AutoZone, the largest U.S. auto parts retailer, surged as much as 12.5 percent to hit a record high.

AutoZone is benefiting from increasing consumer demand for replacement parts and other maintenance services as car and truck owners extend the life of existing vehicles in the face of the economic recession.

U.S. new vehicle sales fell 18 percent to 13.2 million units in 2008, and most automakers expect further declines in 2009, to as low as 10 million units.

In the second quarter ended on Feb. 14, net income rose to $115.9 million, or $2.03 per share, from $106.7 million, or $1.67 per share, a year earlier.

Net sales rose 8 percent to $1.45 billion.

Analysts on average were expecting earnings of $1.85 per share on revenue of $1.38 billion, according to Reuters Estimates.

AutoZone, which has 4,141 stores in the United States and 158 in Mexico, said its balance sheet was in "excellent condition" despite challenging economic conditions.

Shares of the company were up $17.14, or 12.2 percent, at $157.17 in morning New York Stock Exchange trade after rising as high as $157.49 earlier in the session. (Reporting by Soyoung Kim in Detroit and Bhaswati Mukhopadhyay in Bangalore; Editing by Lisa Von Ahn)