This could happen very easily. Depending on what application you are opening the exported report with, and what options you have when doing so will affect how your report will look. You may have to modify some things in your report first, prior to exporting it if you are going to use a text editor or word processing application to open it, or you may be able to do some formatting in the destination application (should only have to do this once, then save the formatting) upon opening the .txt file if you are going to use a spreadsheet (such as Excel) software.

For example, I created a simple OE report and did not change any Header or Detail section formatting or field size. I exported the report in "Text" format. Then, I opened the file in Word as "Text Only". The results were as you explained; with wrapped headings and details. (I would have to do some formatting in Word to decrease the font size, maybe insert tab stops and/or insert a table before it would be readable.)

If, however, I open this file in Excel, it gives me a "Text Import Wizard" window in which to select some options that will format the file in the way I want. If you try this, here are the steps to get a "readable" document, once you get to the Text Import Wizard screen:
1. For the file type, choose Fixed Width (it should default to this)
2. "Start Import at row" 1 should be the default, if not enter "1"
3. "File Origin" is Windows (ANSI)
4. Click "Next >" to continue
5. The next window will allow you to modify the column breaks by moving or adding a line to separate the columns on your report. Do so if you wish, but you can always do this in Excel after it opens the file.
6. Click "Next >" when you are done
7. Now, you get to tell Excel what format each column. Normally, you don't really have to do anything here, but it's your choice. When you are finished, click "Finish" to open the report.
8. Now, you should see the results of your export in a readable, aligned format. You can now use Excel's functions and options to format it exactly as you want, then save it to retain the format for next time.

Hope this helps.