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): May 14, 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 May 14, 2009, CTI Industries Corporation issued a press release reporting earnings and other financial results for its first quarter March 31, 2009.  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 May 14, 2009, captioned: “CTI Industries Corporation Reports First Quarter 2009 Financial Results”

*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:   May 18, 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

First Quarter 2009 Financial Results

FOR IMMEDIATE RELEASE

Thursday, May 14, 2009

BARRINGTON, IL, May 14, 2009 -- CTI Industries Corporation (NASDAQ Capital Market), a manufacturer and marketer of flexible packaging and storage products, laminated films and novelty balloons, today announced its results of operations for the first quarter of 2009.

Consolidated net sales for the first quarter of 2009 were $9,603,000 compared to consolidated net sales of $10,735,000 for the first quarter of 2008, representing a decrease of 10.5%.  The Company earned net income of $93,000 or $0.03 per share (basic and diluted) for the first quarter of 2009 compared to net income of $279,000 or $0.10 per share (basic and diluted) for the first quarter of 2008.

Key Factors and Trends

Novelty product revenues were up 7.9%, from $6,101,000 in the first quarter of 2008 to $6,580,000 in the first quarter of 2009.  Sales of pouch products were down 59.7% from $2,447,000 in the first quarter 2008 to $986,000 in the first quarter 2009.  Most of this decrease is attributable to lower sales of vacuum pouch products to a principal customer. Sales of laminated films showed a modest decline from $1,943,000 in the first quarter of 2008 to $1,876,000 in the first quarter of 2009.

Gross profit declined from $2,332,000 in the first quarter of 2008 to $2,067,000 in the first quarter of 2009.  Gross margins rates remained essentially constant.

Operating expenses were down slightly in the first quarter 2009, compared to the first quarter of 2008, by about $87,000 but increased as a percentage of sales from 15.8% in 2008 to 16.7% in 2009.

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 Sheets

	March 31, 2009		December 31, 2008
Assets	(Unaudited)
Current Assets:
Cash and cash equivalents	$	244,132	$	180,578
Accounts receivable, net		6,491,221		5,821,593
Inventories, net		10,267,516		10,504,769
Other current assets		1,326,691		1,181,097
Total current assets		18,329,560		17,688,037
Property, plant and equipment, net		10,284,662		10,575,982
Other assets		1,663,971		1,724,172
Total Assets	$	30,278,193	$	29,988,191
Liabilities & Equity
Total current liabilities	$	16,735,655	$	16,222,180
Long term debt, less current maturities		5,816,509		6,018,655
Stockholders' equity		7,712,039		7,734,600
Noncontrolling interest		13,990		12,756
Total Liabilities & Equity	$	30,278,193	$	29,988,191

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Consolidated Statements of Operations

	Three Months Ended March 31
	2009			2008
	(Unaudited)			(Unaudited)
Net sales	$	9,603,422		$	10,734,701
Cost of sales		7,536,919			8,403,022
Gross profit		2,066,503			2,331,679
Operating expenses		1,604,755			1,691,974
Income from operations.		461,748			639,705
Other (expense) income:
Net Interest expense		(295,551	)		(270,261	)
Other		(21,598	)		30,322
Income before income taxes and noncontrolling interest		144,599			399,766
Income tax expense		50,158			120,657
Income before noncontrolling interest		94,441			279,109
Noncontrolling interest income of subsidiary		1,234			288
Net income	$	93,207		$	278,821
Basic income per common and common equivalent shares	$	0.03		$	0.10
Diluted income per common and common equivalent shares	$	0.03		$	0.10
Weighted average number of shares and equivalent shares
of common stock outstanding:
Basic		2,808,720			2,662,267
Diluted		2,825,482			2,797,374

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