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): March 31, 2009

CTI INDUSTRIES CORPORATION

(Exact name of registrant as specified in its charter)

Illinois	0-23115	36-2848943
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	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 March 31, 2009, CTI Industries Corporation issued a press release reporting earnings and other financial results for its fourth quarter and twelve months ended December 31, 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 March 31, 2009, captioned: “Record Sales and Substantial Profit Increase for 2009”

*Filed herewith

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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:   March 31, 2009	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

Record Sales and Substantial Profit Increase for 2009

FOR IMMEDIATE RELEASE

March 31, 2009

BARRINGTON, IL, March 31, 2009 -- CTI Industries Corporation (NASDAQ Capital Market), a manufacturer and marketer of novelty balloons, printed and laminated films and flexible packaging and storage products, today announced its full-year results of operations for 2008, as well as for the three months ended December 31, 2008.

Year End Results

For the year ended December 31, 2008, consolidated net sales totaled $44,981,000 compared to consolidated net sales of $36,510,000 for the year ended December 31, 2007, an increase of 23.2%.  For the year, CTI achieved net income of $1,154,000 or $0.42 per share (basic) and $0.40 per share (diluted).  During the year ended December 31, 2007, CTI had a net income of $82,000, representing $0.03 per share (basic and diluted).

Fourth Quarter Results

Consolidated net sales for the fourth quarter of 2008 were $9,832,000 compared to consolidated net sales of $10,299,000 for the fourth quarter of 2007.  CTI had net income of $121,000 or $0.04 per share (basic and diluted) for the fourth quarter of 2008 compared to net income of $125,000 or $0.05 per share (basic and diluted) for the fourth quarter of 2007.

Key Factors

During 2008, CTI experienced an increase in revenues of more than 23.2% over 2007 revenues.  The largest component of that increase was the increase in sales of pouches for consumer applications.  For the year, sales of pouches totaled $10,893,000 compared to $4,938,000 in 2007.  Most of this increase resulted from sales of a vacuumable pouch product marketed by S.C. Johnson & Son, Inc. under their brand ZipLoc.

Sales of CTI’s other product lines also increased during 2008:

· Metalized balloons increased by 10.2% from $15,998,000 in 2007 to $17,629,000 in 2008;

· Latex balloon sales increased by 10.9% from $6,853,000 in 2007 to $7,597,000 in 2008;

· Sales of commercial films increased by 4.7% from $7,846,000 in 2007 to $8,212,000 in 2008.

Gross margin levels declined in 2008 to 22.95% from 23.79% in 2007.  This decline came principally as a result of increased costs of raw materials, including plastic sheeting, resin and latex.  Toward the end of 2008 and into 2009, the cost of these raw materials has reduced significantly from the highest levels they reached during mid-2008.

CTI Industries Corporation, based in suburban Chicago, designs, develops, produces and markets a line of novelty balloon products, laminated and printed films for packaging applications and flexible packaging and storage products.

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
Consolidated Balance Sheets
	December 31, 2008		December 31, 2007
ASSETS
Current assets:
Cash	$	180,578	$	483,112
Accounts receivable, (less allowance for doubtful		5,821,593		5,950,551
accounts of $39,000 and $312,000 respectively)
Inventories, net		10,504,769		9,700,618
Net deferred income tax asset		674,872		1,014,451
Prepaid expenses and other current assets		506,225		651,969
Total current assets		17,688,037		17,800,701
Total property, plant and equipment, net		10,575,982		10,096,155
Total other assets		1,724,172		1,427,279
TOTAL ASSETS	$	29,988,191	$	29,324,135
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities		16,222,180		16,483,109
Total long-term liabilities, less current maturities		6,018,655		6,237,190
Minority interest		12,756		12,534
Total stockholders' equity		7,734,600		6,591,302
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	29,988,191	$	29,324,135

CTI Industries Corporation and Subsidiaries
Consolidated Statements of Operations
	Year ended December 31,						Three months ended December 31,
	2008			2007			2008			2007
Net sales	$	44,980,674		$	36,509,710		$	9,832,048		$	10,299,283
Cost of sales		34,658,271			27,825,493			7,496,480			7,879,631
Gross profit		10,322,403			8,684,217			2,335,568			2,419,652
Operating expenses:
General and administrative		5,375,526			5,211,470			1,311,912			1,288,897
Selling		886,391			753,571			176,195			161,277
Advertising and marketing		1,677,900			1,474,289			413,016			461,428
Total operating expenses		7,939,817			7,439,330			1,901,123			1,911,602
Income  from operations		2,382,586			1,244,887			434,445			508,050
Other income (expense):
Interest expense		(1,031,457	)		(1,285,964	)		(232,146	)		(309,637	)
Other		50,003			173,510			(17,118	)		8,028
Total other expense		(981,454	)		(1,112,454	)		(249,264	)		(301,609	)
Income before income taxes and minority interest		1,401,132			132,433			185,181			206,441
Income tax expense		246,779			50,673			64,454			81,726
Income before minority interest		1,154,353			81,760			120,727			124,715
Minority interest in loss (income) of subsidiary		222			(138	)		(18	)		(35	)
Net income	$	1,154,131		$	81,898		$	120,745		$	124,750
Income applicable to common shares	$	1,154,131		$	81,898		$	120,745		$	124,750
Basic income per common share	$	0.42		$	0.03		$	0.04		$	0.05
Diluted income per common share	$	0.40		$	0.03		$	0.04		$	0.05
Weighted average number of shares and equivalent shares of common stock outstanding:
Basic		2,763,017			2,346,126			2,808,720			2,555,580
Diluted		2,898,681			2,589,960			2,843,196			2,648,434