Sony Ericsson reported a widened loss in the second quarter and abandoned its full-year profitability target. For the three months ended June 30, Sony Ericsson said it lost euro88 million ($99.2 million) compared with a loss of euro83 million in the same quarter last year.

Sales increased 18 percent to euro1.125 billion ($1.269 billion) from a year ago. It shipped 6.7 million handsets in the quarter, a 34 percent increase from last year.

But the company, a joint venture operated by Sweden's Ericsson and Japan's Sony Corp., said it no longer expects to make a profit for the year because of the costs of recent measures to streamline its operations.

A senior executive said the streamlining should allow Sony Ericsson to reach profitability with a global market share of about 6 percent, rather than the 7 percent to 10 percent it had previously said it would need.