Ford Motor Co. on Thursday said it is extremely unlikely meet its previous goal of regaining full year profitability in 2009.

Higher prices for steel and gasoline were the reasons for the reduced expectations, chief executive officer Alan Mulally told analysts and reporters in a conference call today. He said he expects the company to be about breakeven.

He did not say if the company would be profitable in 2010

Mulally said that in recent weeks, the company has seen increasing weakness in business conditions in North America as demand has fallen. He noted rising commodity prices, especially steel and crude oil which have reached record highs.

Ford will reduce its North America vehicle production by 15 percent in the second quarter compared to the same period a year ago. In the third quarter, production could drop as much as 20 percent before rising 8 percent in the fourth quarter.