Skol, so far reporting season has shown that Earnings per shares...

Skol, so far reporting season has shown that Earnings per shares have fallen 4% year on year, despite cost cuttings. Companies like BHP have cut costs and increased volumes to make up for falling revenue. This is the most popular strategy in that companies are waiting for competitors to fall first before volumes are dropped. Does this not seem counter intuitive? I am not one for sarcasm but here goes... 'We will respond to plummeting prices by increasing our volumes and drive down prices further by increasing supply'. It seems like this is the classic snake eating it's own tail scenario.