Our cost reduction program lowered overheads by $170 million when compared to the prior year. By the end of June we have achieved annualized cost reductions of $200 million, exceeding our target of $120 million. These savings reduced the impact of lower revenues on our underlying EBIT margin.
Our customers continue to face difficult market conditions. The ongoing weakness in commodity prices has led to further declines in capital expenditure across the resources and energy sectors.
Importantly in this environment, our customer feedback results are the best we have ever achieved, validating the action we have taken over the last 12 months including the realignment of the business into the four business lines of Services, Major Projects, Improve and Advisian. While significant progress has been made, continuing to adapt and innovate will be a necessary and integral part of doing business. The Company is now leaner and better able to meet the challenges in the market.
In order to improve our service delivery, specific offerings were developed to deliver further value to WorleyParsons’ customers. We launched the Advisian business line, integrated the Breakthrough Project Delivery model into the Project Management Consulting (PMC) offering and accelerated work process transfers to the Global Delivery Centers (GDC).
We closed 30 offices with an associated floor space reduction of 73,000 square meters. We maintain a presence in 42 countries. In addition, we finalized the sale of Exmouth power station and we identified non-core assets to be held for sale including the South African public infrastructure business and the Company’s interest in Cegertec WorleyParsons in Quebec.
We have made progress in strengthening our balance sheet. Efforts to date have achieved an improvement in day sales outstanding by 4 days, with more than half our locations showing improvement from December to June. However, we still have more to do if we are to achieve our target of industry average of 65 days. Cash outflows were reduced by approximately $255 million through a combination of lower capital expenditure, reduced capital spending on acquisitions and no interim dividend.
While we are making progress towards our near term goals, and in most cases exceeding our own targets, we still have considerably more to do. Our management and organization as a whole remain focused on doing what is necessary to align our business with the prevailing marketing conditions, while also looking for opportunities where we can grow into the long term sustainable markets of the future.