Polaris Industries beat fourth-quarter earnings expectations Tuesday with help from off-road vehicle sales and a large boat acquisition that helped offset spiraling trade tariff costs and the millions of dollars spent winding down the company's Victory motorcycle line.

But the company said it expects lower adjusted profits in 2019, citing the effect of tariffs, foreign exchange impacts and higher interest rates. Investors sent its shares down 2 percent on the day.

For the fourth quarter ended Dec. 31, the Medina-based maker of off-road four wheelers, snowmobiles, motorcycles and boats reported sales increased 14 percent to $1.63 billion. Analysts had forecast $1.64 billion.

Excluding one-time items such as the $3 million in Victory wind-down costs, adjusted earnings were $1.83 per share, which beat analysts' average estimates by a penny.

Off-road vehicle sales rose 7 percent to $1.06 billion during the quarter. Last summer's acquisition of Boat Holdings LLC contributed $145 million in revenue and $26 million in profits to the fourth quarter.

Motorcycle sales fell 15 percent to $87.3 million. Aftermarket sales, which include the Transamerican Auto Parts truck detailing stores, fell 4 percent to $212 million. The Global Markets unit that includes military and electric vehicles rose 4 percent to $121 million during the fourth quarter.

For full-year 2018, total sales rose 12 percent to $6.08 billion. Earnings rose 94 percent to $335 million.

Polaris issued its forecast for full-year 2019 guidance, saying sales are expected to grow 11 to 13 percent this year. It expects adjusted earnings of $6 to $6.25 a share, which "includes the combined negative impact from external factors including the annualized impact of current tariffs, adverse foreign exchange impact and higher interest rates of approximately $1.50 per share," officials said.

The company's adjusted earnings per share for 2018 was $6.56.

Polaris' stock fell 2 percent or $1.69 per share on Tuesday, to close at $83.11.

Dee DePass • 612-673-7725