UPDATE 1-Freescale Semiconductor's forecast beats estimates

* Sees first-quarter revenue $945 mln-$985 mln vs est $933.1 mln

* Fourth-quarter adjusted loss $0.15/share vs est loss $0.18

* Fourth-quarter revenue $957 mln vs est $940.4 mln

Jan 29 (Reuters) - Freescale Semiconductor Ltd, which makes chips for cars and machinery, forecast current-quarter revenue above analysts' estimates after reporting better-than-expected fourth-quarter results.

The company expects first-quarter revenue of between $945 million and $985 million. Analysts on average were expecting revenue of $933.1 million, according to Thomson Reuters I/B/E/S.

Bigger rival Texas Instruments Inc last week reported higher-than-expected revenue, but warned of uncertain demand. It said macroeconomic worries had caused customers to defer orders.

Freescale's net loss increased to $35 million, or 14 cents per share, in the fourth quarter, from $6 million, or 2 cents per share, a year earlier.

Excluding items, Freescale reported a loss of 15 cents per share.

Revenue fell 5 percent to $957 million. Chips used in cars and trucks account for 40 percent of Freescale's revenue. Its chips are also used in industrial equipment, cellphones and consumer products.

Analysts on average were expecting a loss of 18 cents per share, on revenue of $940.4 million.

Chief Executive Gregg Lowe, who left Texas Instruments to lead Freescale in June, has embarked on a restructuring that he hopes will reverse losses in market share that the chipmaker has suffered in nine of the past 10 years.

The company has been struggling with falling prices and shrinking margins, and its factories have been operating at reduced capacity.

The chipmaker said last quarter it would combine its manufacturing operations to cut costs, and focus research and development on select product groups.

Freescale's shares have risen about 38 percent since Oct. 25, when CEO Lowe announced the restructuring.

Shares of the company, which has a market valuation of about $3.04 billion, closed at $12.39 on the New York Stock Exchange on Tuesday.