US-based CTI Industries, parent company of CTI Balloons, has announced its Q3 results for 2017, with company-wide losses offset by steady growth across the balloon side of the business.
During the quarter ending September 30 2017, CTI Industries (a manufacturer and marketer of novelty balloon products, flexible packaging and storage products, home container and organizing products and laminated films) reported net sales of $13,226,000, down $250,000 (3.4%) on the same period last year ($13,476,000).
However, revenues from the sale of foil balloons, CTI’s largest product line, have increased by 4.4%, rising from $20,540,000 for the nine-month period ending September 30 last year to $21,447,000 in 2017.
“Sales to our principal foil balloon customer remained steady,” said John Schwan, chief executive officer, “while sales to other customers, both new and existing in the US and Europe grew from $8,715,000 for the nine month period last year to $9,958,000 this year. We are anticipating continued strong revenues and growth in our foil balloon product line for the balance of the year.”
The company is introducing two new foil production machines which will be in service by the end of 2017 and which will substantially increase CIT’s foil balloon capacity.
CTI’s latex balloon product line has recovered from a decline last year, growing by 39.8% in the third quarter this year, from $1,875,000 to $2,620,000. Latex balloon revenues also grew by 12.7% across the nine month period, from $6,182,000 in 2016 to $6,969,000 for 2017. New production equipment which arrived late last year has supported the continued growth in revenues.
John put the companywide losses down to a number of factors, including losses in the UK operation, but stated that: “We are working diligently to complete our re-financing efforts in the fourth quarter and to implement cost reductions in our operations in the US and UK, and expect to have a strong fourth quarter both in terms of sales and results.”
