NEW YORK (Reuters) - Tyco Electronics Ltd reported better-than-expected earnings, helped by higher sales and profit in its underseas telecommunications unit, cost cuts and a lower-than-expected tax rate.

The maker of electronic connectors, telecom network components, and fibre optics, said sales to consumer-related markets including automotive would improve sequentially in the current quarter, but would be mostly offset by declines in industrial markets.

Its shares were up 58 cents, or 3.4 percent, at $17.46 in morning trading on the New York Stock Exchange.

The company posted a net loss of $3.2 billion, or $7.07 per share, in its fiscal second quarter, compared with a profit of $301 million, or 62 cents per share a year earlier.

Excluding impairment charges, Tyco Electronics earned 14 cents per share, beating analysts' forecasts of four cents per share, according to Reuters Estimates, but down sharply from 67 cents per share a year earlier.

Revenue fell by a third to $2.5 billion, beating Wall Street forecasts for sales of $2.38 billion.

Its biggest segment, electronic components, reported a 45 percent sales decline and swung to a loss. But its undersea telecom unit increased sales and profits, helping the company beat expectations.

The company expects sales of $2.35 billion to $2.45 billion in the current quarter and forecast fiscal third-quarter adjusted profit of one cent to six cents a share, versus Wall Street estimates of eight cents a share.

But the company's forecast was not completely comparable with analyst estimates because it is not yet clear how the company will account for the divestiture of its wireless unit, Citi analyst Jim Suva said in a note to clients.

Tyco Electronics agreed to sell its wireless unit earlier this month to Harris Corp. for $675 million.

Shareholders will be asked to vote in June on a company proposal to reincorporate in Switzerland. Shareholders of former parent Tyco International Ltd. approved that company's reincorporation from Bermuda last month.