Mitsubishi Elec raises 2009/10 outlook to net profit

* Mitsubishi Elec raises annual oper profit outlook by 55%

* Says demand for auto parts,factory gear prompted revision

* Shares end up 0.1 pct ahead of revision, outstrip market

Defense News: TOKYO, March 23 (Reuters) - Mitsubishi Electric Corp (6503.T) raised its earnings forecast for the year ending this month to a net profit from the previously expected loss on strong demand for its factory automation equipment and auto components.

The diversified electronics maker, which competes with Siemens (SIEGn.DE) in factory automation gear and with United Technologies (UTX.N) in elevators, now expects a net profit of 25 billion yen ($277 million) for the year to March 31, up from the 20 billion yen loss previously forecast.

The new outlook exceeds the consensus of an 11 billion yen profit in a poll of 16 analysts by Thomson Reuters I/B/E/S.

Demand for the firm's factory automation tools, car parts and power semiconductors has picked up in recent months due to recovering capital spending in Asia and governments' stimulus measures, the company said.

Power semiconductors control electricity flows and are used in a wide range of products including automobiles and air-conditioners.

Mitsubishi Electric, known for its conservative earnings estimates, also raised its operating profit forecast to a 93 billion yen profit for the current business year, up 55 percent from its prior outlook and narrowly beating an analyst consensus for an 89.8 billion yen profit.

Prior to the announcement, but following a report by the Nikkei business daily that the company would likely post an operating profit of about 90 billion yen for the year to March 31, Mitsubishi Electric shares closed up 0.1 percent at 815 yen, outperforming the Nikkei average .N225, which fell 0.5 percent. (Reporting by Kiyoshi Takenaka; Editing by Edwina Gibbs and Joseph Radford)