* Posts loss 28 cents/shr vs estimate loss 31 cents/shr

* Sees higher revenue, earnings for current quarter

* CEO says there are indications 'the worst is over'

* Shares up more than 6 percent (Adds shares, comments from conference call, byline)

By Soyoung Kim

DETROIT, Nov 10 (Reuters) - ArvinMeritor Inc (ARM.N: Quote, Profile, Research) reported a smaller-than-expected quarterly loss on Tuesday as cost cuts countered the impact of the economic downturn, and the auto parts supplier forecast improved earnings for the current quarter, sending its shares up more than 6 percent.

The company joins other U.S. auto suppliers in reporting improved results and outlooks after sweeping cost-cutting to address steep production cuts by automakers, bolstering confidence that the sector had seen the trough of a severe downturn.

ArvinMeritor Chief Executive Chip McClure said the quarterly results "may indicate that we are beginning to see signs that the worst is over."

ArvinMeritor achieved its targeted cost savings of $195 million in its core businesses over the past year. That allows the company to reinstate salaries for its U.S. white-collar workers, which have been reduced by 5 percent since early this year, it said.