8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 17, 2006

CTI INDUSTRIES CORPORATION

(Exact name of registrant as specified in its charter)

Illinois	0-23115	36-2848943
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

22160 North Pepper Road, Barrington, IL	60010
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code  (847) 382-1000 

______________________________N/A____________________________

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item No. 2.02 - Results of Operations and Financial Condition

On November 17, 2006, CTI Industries Corporation issued a press release reporting earnings and other financial results for its third quarter and nine months ended September 30, 2006. A copy of the Press Release is attached as Exhibit 99.1

The information disclosed under this Item 2.02 (including Exhibit 99.1) shall not be deemed “filed” for the purposes of Section 18, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item No. 9.01 - Financial Statements and Exhibits

(c)Exhibits:

Exhibit No.	Exhibit
99.1	Press Release dated November 17, 2006, captioned:“CTI Industries Corporation Reports Increased Revenues and Profits for the Third Quarter 2006 ”

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CTI Industries Corporation (Registrant)
Date: November 20, 2006	By:	/s/ Howard W. Schwan
		Howard W. Schwan, President

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EX-99.1

Exhibit 99.1

NEWS RELEASE

FOR FURTHER INFORMATION CONTACT:

Stephen M. Merrick	Catherine E. Lawler
Executive Vice President	Investor Relations
(847) 382-1000	(847) 671-1177

CTI Industries Corporation

Reports Increased Revenues and Profits

For the Third Quarter of 2006

FOR IMMEDIATE RELEASE

Friday, November 17, 2006

BARRINGTON, IL, November 17, 2006 -- CTI Industries Corporation (NASDAQ Small Cap - CTIB), a manufacturer and marketer of metalized balloons, latex balloons, novelty items, packaging and storage bags and pouches and printed and laminated films, today released financial results for its third quarter and for the nine months ending September 30, 2006. For the quarter, net sales were $8,603,000, compared to net sales for the third quarter of 2005 of $6,034,000, an increase of 42.6%. The Company achieved a net profit for the quarter of $315,000 compared to a net loss for the same period in 2005 of $(416,000).

Net income per share for the three months ending September 30, 2006 was $0.15 (basic and diluted), compared to a net loss per share for the three months ending September 30, 2005 of $(0.21) (basic and diluted). Operating income for the third quarter of 2006 was affected positively by income generated from the settlement of certain obligations of a Mexican subsidiary in the amount of $318,000, net of certain expenses and loss on the sale or disposal of certain assets.

For the nine month period ending September 30, 2006, net revenues were $25,756,000, compared to net revenues for the same period in 2005 of $22,710,000, an increase of 13.4%. For the nine month period, the Company had net income of $741,000, representing earnings per share of $0.36 (basic) and $0.34 (diluted), compared to a net loss of $385,000 for the same period of 2005 which represented a loss per share of $0.20 (basic and diluted).

“Our results so far this year have been quite strong both in terms of revenues and profits,” reported Howard Schwan, President. “We have experienced substantial increases in our revenues from the sale of novelty products and we have solidified our relationship with two of our major customers for film and pouch products through long-term contracts with both of them.”

“During 2006, we have focused our efforts both on growing our revenues and improving our margins. We are pleased to have achieved those goals during the first nine months of this year,” said Stephen Merrick, Executive Vice President and Chief Financial Officer.

CTI Industries is one of the leading manufacturers and marketers of metalized and latex balloons, develops, produces and markets bags and pouches for storage and packaging applications and produces laminated and printed films for commercial uses. CTI markets its products throughout the United States and in a number of other countries.

Statements made in this release that are not historical facts are “forward-looking” statement (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These “forward-looking” statements may include, but are not limited to, statements containing words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “goal,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or similar expressions. Factors that could cause results to differ are identified in the public filings of the Company with the Securities and Exchange Commission. More information on factors that could affect CTI’s business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

-- FINANCIAL HIGHLIGHTS FOLLOW --

CTI Industries Corporation and Subsidiaries

Condensed Consolidated Balance Sheet

	September 30, 2006		December 31, 2005
Assets	(Unaudited)
Current Assets:
Cash and Cash Equivalents	$	320,471	$	261,982
Accounts receivable, net		5,550,133		4,343,671
Inventories, net		8,026,935		7,022,569
Other current assets		661,994		707,082
Total current assets		14,559,533		12,335,304
Property, plant and equipment, net		8,678,991		9,616,744
Other assets		1,680,428		1,584,002
Total Assets	$	24,918,952	$	23,536,050
Liabilities & Stockholders' Equity
Total current liabilities	$	13,701,314	$	14,761,388
Long term debt, less current maturities		5,864,591		4,394,390
Other liabilities		1,363,491		1,644,339
Minority interest		14,268		10,091
Stockholders' equity		3,975,288		2,725,842
Total Liabilities & Stockholders' Equity	$	24,918,952	$	23,536,050

Consolidated Statements of Operations

	Quarter Ended September 30						Nine Months Ended September 30
	2006			2005			2006			2005
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net sales	$	8,602,733		$	6,033,831		$	25,755,891		$	22,709,784
Cost of sales		6,349,870			4,791,645			19,352,602			18,010,651
Gross profit		2,252,863			1,242,186			6,403,289			4,699,133
Operating expenses		1,471,801			1,399,430			4,477,782			4,425,262
Income from operations		781,062			(157,244	)		1,925,507			273,871
Other income (expense):
Net Interest expense		(514,465	)		(281,047	)		(1,276,514	)		(868,154	)
Other		63,828			(3,798	)		154,382			216,853
Income (loss) before income taxes and minority interest		330,425			(442,089	)		803,375			(377,430	)
Income tax expense		11,719			(25,544	)		59,330			8,168
Income (loss) before minority interest		318,706			(416,545	)		744,045			(385,598	)
Minority interest in (loss) of subsidiary		3,242			(278	)		3,114			(203	)
Net income	$	315,464		$	(416,267	)	$	740,931		$	(385,395	)
Basic income (loss) per common and common equivalent shares	$	0.15		$	(0.21	)	$	0.36		$	(0.20	)
Diluted income (loss) per common and common equivalent shares	$	0.15		$	(0.21	)	$	0.34		$	(0.20	)
Weighted average number of shares and equivalent shares of common stock outstanding:
Basic		2,055,553			1,963,615			2,071,199			1,957,283
Diluted		2,129,658			1,963,615			2,156,025			1,957,283