Praxair Inc. (PX), through its Canadian subsidiary, Praxair Canada Inc. enhanced its presence in Canada by signing a long-term supply agreement with a member of the Essar Group, Essar Steel Algoma Inc., a fully integrated steel producer.
 
Praxair Canada contracted to design and build a cryogenic air separation plant for Essar Steel Algoma’s steel plant to supply 900 tons of gaseous oxygen on a daily basis.  The plant is expected to be fully operational by early 2011 and will become a part of Praxair’s facilities at Essar.
 
The agreement strengthens Praxair Canada’s 50 year-old relationship with Essar and positions both the companies for healthy future growth.  It also positions Praxair well to exploit opportunities in North America, which accounted for roughly 51% of the first-quarter revenues.  Revenues in the quarter increased 6% year over year, primarily getting a boost from currency appreciation in Canada.
 
Praxair’s intense focus on continuously expanding its reach within its operating regions and adding new customers has accelerated its profit growth, which should continue in the future. Furthermore, Praxair is likely to benefit from the favorable economic environment, given its broad end-market exposure to food and beverage, steel, glass and chemicals.
 
For the second quarter 2010, Praxair expects earnings per share to be in the range of $1.10 to $1.15; and for the full year 2010, in the range of $4.42 to $4.57.  Total revenues for the full year are expected to be approximately $10 billion.
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