Philips Healthcare (NYSE:PHG) had a tough 2nd quarter with a shutdown of a manufacturing facility in Cleveland taking some of the wind out of the sales for the entire company.

The Dutch giant’s healthcare sales dropped 9.5% to $2.87 billion (EUR 2.14 billion) during Q2 2014, compared with $3.17 billion (EUR 2.36 billion) during the same time last year. Philips said its 2nd-quarter earnings before interest, taxes & amortization to be roughly $302.2 million (EUR 225 million), compared with $564 million (EUR 420 million) last year.

Company leadership blamed the slide in part on the April suspension of a Cleveland manufacturing facility, a measure Philips initiated after an FDA inspection turned up violations in recall management.

"Ongoing softness in certain markets, unfavorable currency exchange rates and the voluntary temporary suspension of production at the Cleveland facility continue to impact our performance this quarter," Philips CEO Frans van Houten said in a conference call with investors last week. "The remediation program at the Cleveland facility is progressing according to plan and shipments are expected to resume gradually over the course of the 3rd quarter."

The facility closure and corrective actions cost Philips’ healthcare business $68.5 million (EUR 51 million) during the quarter, van Houten added.

The company hopes to spur a turnaround in the 2nd half of the year with the return of the Cleveland plant and some significant restructuring in the healthcare business. The company announced earlier this month that it’s shedding a layer of management to bring the business "into the heart of Philips."