STRONG REGIONAL BUSINESSES
In a tough economic environment, our North American business increased sales 8% and generated strong cash flow, reflecting a combination of new business and successful pricing actions as well as a strong focus on productivity. Demand in industrial markets began to pick up late in the year; growth came from higher sales to the metals, chemicals and manufacturing sectors. Praxair Services, Inc., a subsidiary formed mid-year, also experienced strong sales, reflecting increased oil- and gas-well drilling activity during the year. Praxair Services offers comprehensive integrity assessment for tanks and piping, mobile nitrogen pumping and rapid-response cleaning, environmental drilling, pipeline hydro-testing and leak-detection services. To enhance Praxair’s ability to supply customers in Western Canada, Praxair Canada acquired the Western Canada bulk-gas business of Air Products. This business encompasses supply to about 60 locations as well as a small number of on-site production facilities in British Columbia, Alberta, Manitoba and Northwest Territories.

In the food market, the year marked the first commercial installation of Praxair’s Better Than Fresh™ non-thermal juice-processing system and NatureWash™ ozonated-water produce-washing system. Applied to orange juice production, the juice processing system uses carbon dioxide rather than heat to kill microorganisms, retaining more of the juice's natural flavor and nutrients. The patent-pending ozonated-water system is being used to process fresh-cut fruit and vegetables for the pre-packaged, ready-to-eat consumer market. Incorporating ozone into the washing process better preserves the taste, appearance and texture of produce compared to other methods.

Praxair Distribution, our cylinder-gases business in the U.S. and Canada, made substantial progress in positioning itself as a full-service solutions provider. Using proprietary tools such as our computerized StarSolver® productivity-improvement program, Praxair specialists are helping customers reduce costs and improve product quality by recommending changes to production processes. Other services include cylinder-to-bulk-gas conversion systems, gas-cylinder management, and installation of gas-distribution systems that lower residual losses and increase safety and reliability.