UPDATE 1-Martinrea ekes out profit, sees volumes improving

* Q3 earnings of C$0.01/shr vs C$0.06/shr year ago

* EPS C$0.04 ex-items vs analysts C$0.06

* Revenue down 17.4 percent to C$293.8 million

* Company expects slow, steady growth

TORONTO, Nov 10 (Reuters) - Auto parts maker Martinrea International Inc (MRE.TO) reported a smaller quarterly profit on Tuesday due to lower volumes, but said its most difficult days were behind it and that production levels in the auto sector had begun to pick up.

The company posted a profit of C$717,000 ($683,000), or 1 Canadian cent a share, for the period ended Sept. 30. That compares with a profit of C$4.2 million, or 6 Canadian cents a share, a year earlier.

Adjusted to exclude one-time items, the company said it earned 4 Canadian cents a share.

Sales at Toronto-based Martinrea were down 17.4 percent at C$293.8 million.

Analysts, on average, expected a profit of 6 Canadian cents a share, excluding items, on revenue of C$321.3 million, according to Thomson Reuters I/B/E/S.