Feb 22 (Reuters) -

LKQ Corp said on Thursday the ongoing Red Sea crisis was disrupting some of its European operations, prompting the auto parts distributor to place more orders as a precautionary measure.

The company said freight costs were likely to rise if the crisis persists even as its fourth-quarter profit beat estimates on robust aftermarket sales and cost cuts, sending its shares up 3%.

"In Europe, our procurement team is seeing some disruption with the shipping lines having to divert their vessels via the Cape of Good Hope around South Africa, increasing lead times and freight costs," outgoing CEO Dominick Zarcone said on a post-earnings call.

Houthis, a Yemeni militant group, has been targeting ships in the Red Sea waters since November, forcing companies to reroute their freight vessels.

Inflationary pressures and elevated borrowing costs are prompting Americans to repair their older vehicles, instead of buying new cars, driving up demand for spare parts.

The Chicago, Illinois-based company reported an adjusted earnings per share of 84 cents, beating analysts' estimates of 76 cents, according to LSEG data.

LKQ, which also sells scrap and other materials to metal recyclers, posted sales of $3.50 billion for the three months ended Dec. 31, shy of estimates of $3.52 billion.

The company forecast adjusted earnings per share between $3.90 and $4.20 for 2024, compared to analysts' estimates of $4.11.

LKQ also forecast 2024 organic revenue growth between 3.5% and 5.5% for its parts and services. (Reporting by Raechel Thankam Job; Editing by Ravi Prakash Kumar)