Localizing reports is about changing the language of the report, not the layout and design. The built-in localization in Reporting also states this: http://www.telerik.com/help/reporting/advanced-localizing-reports.html
The built-in mechanism saves the text strings inside a report resource file specific for the culture. It does not save style and other type of configurations.
By your description I can suggest that you need to programmatically check the culture inside your application. Depending on the results of this check, you need to swap the report with a different report which is designed specifically for the culture of the client.