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 11, 2008

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 11, 2008, CTI Industries Corporation issued a press release reporting earnings and other financial results for its third quarter and nine months ended September 30, 2008. 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 11, 2008, captioned: “CTI Industries Corporation Reports Results for Third Quarter 2008”

*Filed herewith

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 11, 2008	By:	/s/ Howard W. Schwan
		Howard W. Schwan, President

EX-99.1

Exhibit 99.1

NEWS RELEASE

FOR FURTHER INFORMATION CONTACT:

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

CTI Industries Corporation Reports Results

for the Third Quarter 2008

FOR IMMEDIATE RELEASE

Tuesday, November 11, 2008

BARRINGTON, IL, November 11, 2008 -- CTI Industries Corporation (NASDAQ Capital Market - 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, 2008. For the quarter, net sales were $11,953,000, compared to net sales for the third quarter 2007 of $8,673,000, an increase of about 38%. The Company had a net income for the quarter of $269,000 compared to a net loss for the same period of 2007 of $(414,000).

Net income per share for the three months ending September 30, 2008 was $0.10 (basic) and $0.09 (diluted), compared to a net loss per share for the three months ending September 30, 2007 of $(0.18) (basic and diluted).

For the nine month period ending September 30, 2008, net revenues were $35,149,000, compared to net revenues for the same period in 2007 of $26,210,000, an increase of 34%. For the nine month period, the Company had net income of $1,033,000, representing net income per share of $0.38 (basic) and $0.35 (diluted), compared to a net loss of $(43,000) for the same period of 2007 which represented a loss per share of $(0.02) (basic and diluted).

Stephen M. Merrick, Chief Financial Officer of the Company, said, “We continued our rapid rate of growth in the third quarter. Growth in our zippered pouch sales represented the most significant component but we also experienced growth in each of our other product lines - foil balloons, latex balloons and commercial films. Our profitability was limited by the significant increases in raw materials costs we experienced through the first three quarters of the year. However, with the recent decline in the market price of oil and latex, we are now beginning to see reductions in our raw materials costs.”

MORE

John Schwan, Chairman of the Company, reported: “In July, the roll-out of the S.C. Johnson & Son, Inc. ZipLoc Vacuum Bag system commenced to retail outlets throughout the United States. This is a product that we are producing for S.C. Johnson & Son, Inc. under a long-term agreement. Much of our increased sales of zippered pouch product during the Third Quarter represents sales of this product.”

In the third quarter, sales of pouch products increased by 138% compared to the third quarter 2007, from $1,581,000 to $3,767,000. Sales of foil balloons were up 14% for the quarter, commercial films up 15% and latex balloons up 19%.

For the nine months gross margins were 23%, down from 24% for the same period of 2007.

* * * *

CTI Industries is one of the leading manufacturers and marketers of metallized 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.

This press release may contain forward-looking statements within the meaning of Section 17A of the Securities Act and Section 21E of the Securities Exchange Act. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties, including (i) the risks of generating and maintaining sales in a highly competitive market, (ii) the ability of the Company to enter into or maintain contracts or relationships with customers, distributors, licensors and

suppliers, (iii) manufacturing risks, as well as other risks and uncertainties reported by the Company in its SEC filings, and such statements should also be considered in

conjunction with cautionary statements contained in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K.

- FINANCIAL HIGHLIGHTS FOLLOW --

2

CTI Industries Corporation and Subsidiaries

Condensed Consolidated Balance Sheet

		September 30, 2008		December 31, 2007
Assets		(Unaudited)
Current Assets:
Cash and cash equivalents	$	860,016	$	483,112
Accounts receivable, net		6,738,667		5,950,551
Inventories, net		10,742,677		9,700,618
Other current assets		1,425,475		1,666,420
Total current assets		19,766,835		17,800,701
Property, plant and equipment, net		10,568,979		10,096,155
Other assets		1,366,797		1,427,279
Total Assets	$	31,702,611	$	29,324,135
Liabilities & Stockholders' Equity
Total current liabilities	$	16,900,234	$	16,483,109
Long term debt, less current maturities		5,376,543		5,167,039
Other liabilities		953,488		1,070,151
Minority interest		12,775		12,534
Stockholders' equity		8,459,571		6,591,302
Total Liabilities & Stockholders' Equity	$	31,702,611	$	29,324,135

3

Consolidated Statements of Operations

	Three Months Ended September 30						Nine Months Ended September 30
		2008			2007			2008			2007
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net sales	$	11,952,979		$	8,672,726		$	35,148,626		$	26,210,428
Cost of sales		9,210,708			7,055,243			27,161,791			19,945,862
Gross profit		2,742,271			1,617,483			7,986,835			6,264,566
Operating expenses		2,188,645			1,900,596			6,038,694			5,527,728
Income (loss) from operations.		553,626			(283,113	)		1,948,141			736,838
Other income (expense):
Net Interest expense		(242,646	)		(348,829	)		(799,311	)		(976,327	)
Other		24,912			72,135			67,123			165,482
Income (loss) before income taxes and minority interest		335,892			(559,807	)		1,215,953			(74,007	)
Income tax expese (benefit)		66,487			(145,939	)		182,326			(31,053	)
Income (loss) before minority interest		269,405			(413,868	)		1,033,627			(42,954	)
Minority interest (loss) income of subsidiary		(24	)		(34	)		241			(103	)
Net income (loss)	$	269,429		$	(413,834	)	$	1,033,386		$	(42,851	)
Basic income (loss) per common and common equivalent shares	$	0.10		$	(0.18	)	$	0.38		$	(0.02	)
Diluted income (loss) per common and common equivalent shares	$	0.09		$	(0.18	)	$	0.35		$	(0.02	)
Weighted average number of shares and equivalent shares
of common stock outstanding:
Basic		2,799,501			2,339,467			2,747,604			2,275,541
Diluted		2,968,895			2,339,467			2,934,736			2,275,541