CTI Industries, a manufacturer and marketer of flexible packaging and storage products, laminated films and novelty balloons, has reported net sales of $12.81m for second quarter ended 30 June 2017, compared to $14.15m for the same period last year.
Gross profit was $3.11m in the quarter, compared to $3.83m in the corresponding quarter last year. Operating expenses were $3.56m in Q2, compared to $3.63m in the previous year.
Revenue of Foil and Latex Balloons divison was $6.78m, compared to $6.35m a year ago.
Revenue of Vacuum Sealing Systems was $3.27m at the end of first half, compared to $4.76m in the corresponding period a year ago.
The company said revenues from the sale of film products have decreased in the first six months of this year to $1,536,000 from $2,370,000 for the same period last year.
It noted that most of its sales of film products are to a long term customer who remains as a customer but to whom sales have declined this year.
CTI Industries president Stephen Merrick said: “While performance in our foil and latex balloon product lines has been reasonably strong during this period, revenues in our vacuum sealing and commercial film lines have been well below last year and have negatively affected our results.
The company is taking several actions to enhance its profitability in the second half of this year.
Merrick said: "First, we do anticipate improvement in our revenues for our vacuum sealing line in the second half, as the effects of a major sales promotion late last year wear off.
“Second, we are installing two new foil balloon converting machines in September which will enhance our production during the fourth quarter. Third, we have taken significant actions to reduce our operating expenses and believe we will effect reductions in general, administrative, sales and marketing expense at an annualized level of more than $1.4 million."
CTI markets its products throughout the US and in several other countries.
