It can and does but the syntax for enabling it as a custom number format is rather perverse and you probably would not guess what it does from just looking at it unless you are an Excel wizard.
See my adjacent post - but in summary:
The required default setting is Format Cells Custom "##0.0E+0" But the variable number of significant digits is not ideal!
Closest to being useful for engineers is "##0.0##E+0"
And "#0.0#E+0" will do even powers of ten only.
This functionality has been available since at least Excel 2k. I don't have any older versions still running here (or rather the machine they run on no longer boots at present and is not a priority to fix).
Maybe he has a time machine and a version from 2700?