AMSTERDAM (Reuters).-Dutch technology company Philips stated Monday that sales are expected to rise strongly in second half of year. However, a steep fall due to a global shortage of parts will likely persist for the next few months.

Philips had earlier warned this month that problems in supply chains would affect profit. The ventilator recall needs to be increased. That sent Philips shares plummeting over 15%. It was the worst day for financial markets since many decades.

Frans van Houten, Chief Executive Officer of Frans Van Houten stated in a statement that “we expect to begin the year with a similar sales decline followed by a recovery.

He said that this should result in a 3% to 5% increase in comparable sales by 2022 and a 40-90 basis point improvement in adjusted earnings before tax, amortization (EBITA).

Overall growth will be held back by the sleep & respiratory care unit, which is still working on the massive recall of breathing-aid machines launched last year, amid concerns that a type of foam used in the devices could degrade and become toxic.

Van Houten stated that growth, including this unit, should reach between 5% and 6%.

Philips, which has set aside 725million euros (8220.41 million) for 5 million device repairs and replacements around the globe, does not pay the legal costs. There are more than 100 class-action suits against the company. The company’s fears about a huge claims bill have already reduced Philips’ market valuation by approximately 15 billion Euros in the nine-months since.

Amsterdam-based Company said it saw comparable sales fall 10% for the fourth quarter in 2021. Adjusted EBITA decreased 35% to 647 Million Euros, according to preliminary numbers, which were released January 12.

($1 = 0.8837 euros)