(Adds targets, share price)
PARIS, May 28 (Reuters) - Jean-Martin Folz, chairman of French carmaker PSA Peugeot Citroen , said on Wednesday it would be difficult for the group to reach its full-year targets given the economic context and currency situation.
"The economic and monetary context is not favourable and in these conditions reaching our targets will be difficult," he told shareholders at their annual meeting, but added that the carmaker would still do its utmost to achieve them.
Last month the company confirmed a 2003 target of boosting operating profit to three billion euros, but said it would not be easy to keep the operating margin in its autos division at 5.0 to 5.2 percent, the same as last year. Analysts have warned that the group's profit streak might stall.
Shares in the company, which were firmer before Folz's comments, shed 3.29 percent to 36.99 euros shortly after his comments, lagging European peers that were up marginally at the time.