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): August 12, 2009

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 August 12, 2009, CTI Industries Corporation issued a press release reporting earnings and other financial results for its three and six month periods ended June 30, 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 August 12, 2009, captioned: “CTI Industries Corporation Reports Second Quarter 2009 Financial Results.”

*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:   August 12, 2009	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

Second Quarter 2009 Financial Results

FOR IMMEDIATE RELEASE

Wednesday, August 12, 2009

BARRINGTON, IL, August 12, 2009 -- CTI Industries Corporation (CTIB - 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 second quarter of 2009 and for the six month period ended June 30, 2009.

Consolidated net sales for the second quarter of 2009 were $10,779,000 compared to consolidated net sales of $12,461,00 for the second quarter of 2008, a decrease of 13.5%.  The Company earned net income of $409,000 or $0.15 per share (basic and diluted) for the second quarter of 2009 compared to net income of $485,000 or $0.17 per share (basic and diluted)  for the second quarter of 2008.

For the six month period ended June 30, 2009, consolidated net sales were $20,382,000 compared to $23,196,000 for the same period in 2008, a decrease of 12.1%.  For this six month period in 2009, net income was $502,000 or $0.18 per share (basic and diluted) compared to net income of $764,000, or $0.28 per share (basic) and $0.26 per share (diluted) for the same period of 2008.

Key Factors and Trends

Net sales of foil balloons increased by 16.9% in the second quarter compared to the same period of 2008, from $4,918,000 to $5,747,000.  For the six month period, net sales of foil balloons increased by 13.3% from $9,516,000 in the six months ended June 30, 2008 to $10,786,000 for the same period of 2009.

For the second quarter 2009, net sales of pouch products were $1,577,000 compared to $3,441,000 for the second quarter of 2008.  For the six months ended June 30, 2009, pouch sales were $2,562,000 compared to $5,889,000 for the same period of 2008.  In the first six months of 2008, the high level of net sales of pouches was attributable to the build-up of inventory by a principle customer for a July 2008 product launch.  During the first six months of 2009, sales to that customer continue but at a lower level than during the product launch build-up in 2008.

During the second quarter 2009, the dollar value of latex balloon sales decreased by 16% compared to the second quarter of 2008 from $1,969,000 in the second quarter of 2008 to $1,653,000 for the same period of 2009.  The unit volume of sales, however, was up slightly in 2009.  The decline in the dollar value of the sales was due to the fact that a significant portion of the Company’s latex sales are in Mexico denominated in Mexican pesos and the value of the Mexican peso has declined compared to the second quarter of 2008.

Operating expenses declined by approximately $230,000 for the second quarter of 2009 compared to the same period of 2008, and they declined by about $320,000 for the six month period ended June 30, 2009 compared to the same period of 2008.

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 –

2

CTI Industries Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

	June 30, 2009		December 31, 2008
Assets	(Unaudited)
Current Assets:
Cash and cash equivalents	$	202,656	$	180,578
Accounts receivable, net		6,617,105		5,821,593
Inventories, net		10,169,120		10,504,769
Other current assets		1,365,456		1,181,097
Total current assets		18,354,337		17,688,037
Property, plant and equipment, net		10,125,682		10,575,982
Other assets		1,698,968		1,724,172
Total Assets	$	30,178,987	$	29,988,191
Liabilities & Equity
Total current liabilities	$	16,299,152	$	16,222,180
Long term debt, less current maturities		5,469,538		6,018,655
Stockholders' equity		8,396,044		7,734,600
Noncontrolling interest		14,253		12,756
Total Liabilities & Equity	$	30,178,987	$	29,988,191

3

Consolidated Statements of Operations

	Three Months Ended June 30						Six Months Ended June 30
	2009			2008			2009			2008
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net sales	$	10,778,903		$	12,460,945		$	20,382,324		$	23,195,646
Cost of sales		8,178,204			9,548,061			15,715,122			17,951,083
Gross profit		2,600,699			2,912,884			4,667,202			5,244,563
Operating expenses		1,925,768			2,158,074			3,530,523			3,850,048
Income from operations		674,931			754,810			1,136,679			1,394,515
Other (expense) income:
Net Interest expense		(272,566	)		(286,404	)		(568,117	)		(556,665	)
Other		2,599			11,889			(18,998	)		42,211
Income before income taxes and noncontrolling interest		404,964			480,295			549,564			880,061
Income tax expense		(4,037	)		(4,818	)		46,121			115,839
Income before noncontrolling interest		409,001			485,113			503,443			764,222
Noncontrolling interest income of subsidiary		263			(24	)		1,497			264
Net income	$	408,738		$	485,137		$	501,946		$	763,958
Basic income per common and common equivalent shares	$	0.15		$	0.17		$	0.18		$	0.28
Diluted income per common and common equivalent shares	$	0.15		$	0.17		$	0.18		$	0.26
Weighted average number of shares and equivalent shares
of common stock outstanding:
Basic		2,775,902			2,781,025			2,792,220			2,721,646
Diluted		2,776,797			2,929,548			2,797,256			2,885,783