Sauer-Danfoss Inc. reported record sales in the first quarter of 2007, but had a decrease in earnings as a result of restructuring costs from the sale of its direct-current electric motor business.

The German-controlled company with corporate headquarters in Ames said net sales increased 8 percent to $523.1 million compared with $484 million in the first quarter of 2006. The sales increase was driven by strong demand in Europe, while the Asia Pacific region remained level and sales decreased 1 percent in the Americas.

Net income decreased to $15.4 million, or 32 cents per share, compared with $25.6 million, or 54 cents per share, in the first quarter of 2006. The company spent $11.9 million on restructuring costs.

The impact of restructuring costs has led the company to reduce its 2007 full-year outlook to $1.15 to $1.30 per share from $1.30 to $1.45 per share previously. The company still expects sales to be up 6 to 9 percent.