CTI Industries shares dive as Q2 profits plummet
CTI Industries Corp. (NASDAQ:CTIB), a manufacturer of packaging and storage products and balloons, reported second-quarter profits plummeted, hurt by higher shipping costs and the price of raw materials, as the company's shares spiralled down.
The Barrington, Illinois-based company's shares plunged 12.69%, or 58 cents, to $3.99 on late Friday afternoon.
For the three months ending June 30, net sales fell 7.7% $11.94 million.
Profits in the latest quarter were pegged at $13.35 million, or nil per share, compared with $607 million, or 21 cents per share, a year ago.
Analysts, on average, had expected earnings of 16 cents, on revenue of $14.4 million.
The company said the drop in net income stems from higher costs for raw materials, particularly latex, plastic sheeting and resin, as well as greater shipping costs.
As a result, gross margin slid to 17.3% from 22.2% a year earlier.
For the quarter, sales for foil balloons dipped 10.9% to $5.58 million, while net sales of pouch products dove 24% to $1.7 million.
Still, revenue for latex balloon products jumped 17.6% to $2.73 million.
CTI Industries produces and markets balloons, both foil and latex, and distributes these products throughout the United States and in 30 countries.
The company also fabricates a variety of film products for commercial applications, including packaging, flexible containers, extrusion coating, and adhesive laminations.
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